Snowflake IPO Raises $3.36 Billion in Year's Biggest US Listing

Snowflake said late on Tuesday that its initial public offering raised $3.36 billion after it was priced above the target range in the biggest US listing so far this year.

The IPO, which was priced at $120 per share, values the cloud-based data warehouse firm at north of $30 billion.

San Mateo, California-based Snowflake said on Monday it was aiming to sell 28 million shares at $100 to $110 per share after its expected pricing was raised from a range of $75 to $85  per share last week.

Snowflake's IPO eclipses that of Royalty Pharma, which so far was the biggest IPO of 2020, and underscores the recent rebound in the US market for new stocks after the COVID-19 pandemic prompted several companies to put IPO plans on hold.

Snowflake confidentially filed to go public earlier this year, shortly after its last funding in February that valued it at over $12 billion. Venture capital firm Sequoia owned an 8.4 percent stake in the company before the offering.

Snowflake's revenue jumped 173.9 percent to $264.7 million for the full year ended January 31, though its net loss nearly doubled to $348.54 million.

The company's shares are set to start trading on the New York Stock Exchange on Wednesday under the ticker "SNOW," and the offering is expected to close on September 18.

Goldman Sachs, Morgan Stanley, JP Morgan, Allen & Co and Citigroup are the lead underwriters for the offering.

© Reuters

September 16, 2020