Sep 16, 2020 (Baystreet.ca via COMTEX) -- Snowflake /zigman2/quotes/220991541/composite SNOW -4.10% , a provider of cloud-based data storage and analysis software, priced its IPO above its increased range in an offering that values the company at $33.3 billion.
Snowflake announced it is selling 28 million shares at $120 a piece. The company, poised to debut on the New York Stock Exchange on Wednesday under the ticker symbol "SNOW," is the first of several technology companies to go public this week in one of the busiest stretches of the year. Snowflake will raise approximately $3.4 billion from the offering.
Investors are bidding up Snowflake's ahead of the offering as they anticipate a blockbuster opening for a company that's generating over $500 million in annualized revenue and grew over 130% in the first half of the year. The company had already raised its anticipated debut price range from a maximum of $85 to a max of $110 in the space of less than a week.
Snowflake is growing alongside the major public cloud vendors by providing technology that allows clients to quickly analyze and share vast amounts of data and increase capacity as needed, rather than relying on databases that are tied to hardware.
Last week, Snowflake revealed in a filing that Berkshire Hathaway /zigman2/quotes/208872451/composite BRK.A -0.70% and Salesforce /zigman2/quotes/200515854/composite CRM -1.14% each agreed to buy $250 million of stock at the IPO price in a concurrent private placement. Berkshire Hathaway also agreed to buy 4.04 million shares in a secondary transaction from former CEO Bob Muglia. Based on the IPO price, Berkshire will be paying $484.8 million for those shares.
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