Snowflake Inc. (NYSE: SNOW) has raised about $3.4 billion in its initial public offering, according to several reports Tuesday.
What Happened: The cloud-based software startup has sold 28 million shares priced at $120 each, the Financial Times reported.The IPO values Snowflake at about $33.3 billion.
The reported IPO offer price is significantly above the $100 to $110 range Snowflake indicated in a filing with the United States Securities and Exchange Commission on Monday.
In an earlier filing with the SEC, the San Mateo, California-based company had indicated an even lower price range of $75 to $85.
Why It Matters: Snowflake's offering is the largest such in the United States since Uber Technologies Inc.'s (NYSE: UBER) $8.1 billion IPO in May last year, according to Refintiv data reported by FT.
Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) and cloud-based software company Salesforce.com Inc. (NYSE: CRM) agreed to invest $250 million each in Snowflake at the IPO price earlier.
The startup last reported a 121% year-on-year revenue growth in the second quarter at $133 million, with a revenue of $264.7 million in fiscal 2020.
What’s Next: Snowflake shares are set to debut on the New York Stock Exchange under the symbol “SNOW” on Wednesday.
Photo courtesy: Alexey Klijatov via Wikimedia
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