Snowflake (SNOW) rose more than 130% during its first minute trading on Wednesday. The stock opened at $ 245 a share. This is double its IPO price of $ 120.
The cloud-data company sold 28 million shares, totaling about $ 3.36 billion, the largest public offering by a software company.
It was also the biggest IPO of the year, in addition to the SPAC backed by Tcontin Holdings of Pershing Square, the billionaire Bill Ekman, which raised $ 4 billion earlier this year.
The cloud industry has grown on a hot trajectory which is increasing enthusiasm.
Snowflake’s debut received another profile increase after revelations in last week’s filings that Warren Buffett’s Berkshire Hathaway (BRK-A, BRK-B) would invest $ 250 million on the IPO price. In addition, it will also buy 4 million shares owned by former Snowflake CEO Bob Muglia.
Filing also showed Salesforce Ventures, the VC arm of Salesforce (CRM), that would also have bought $ 250 million shares of the cloud-based data platform in a private placement following its public debut.
For the fiscal year ended January 31, 2020, Snowflake’s revenue grew 174% year-over-year. For the six months ended July 31, 2020, its revenue growth represented an ay / y growth of 133%.
The stock’s performance on the first day of trading may be debated over whether the IPO was low.
The SEC recently approved a proposal by the New York Stock Exchange to allow companies to raise new capital in a direct listing, something they were not allowed to do. This new type of direct listing is seen as a way to avoid costly underwriting fees and underpricing.
Ines covers the US stock market. Follow him on twitter @ines_ferre
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