Snowflake Inc. made a hot start to its busiest week for initial public offerings in more than a year.
Its IPO is priced at $ 120 per share on Tuesday night, meaning it will raise at least $ 3.86 billion in the offering, and is likely to exceed $ 4 billion. The company will sell 28 million shares to raise $ 3.36 billion and Berkshire Hathaway Inc. BRK.A
And Salesforce.com Inc. CRM,
The IPO agreed to a concurrent purchase of $ 250 million in shares at a price. Underwriters, led by Goldman Sachs and Morgan Stanley, have access to an additional 4.2 million shares, which could raise the total to $ 4.4 billion.
Given the price increase during the IPO process, demand for those additional shares exists. After originally filing for an IPO less than a month ago, Snowflake announced an expected price range of $ 75 to $ 85 per share last week. On Monday, the San Mateo, California., Software company dramatically increased that limit from $ 100 to $ 110, then exceeded that target Tuesday night. Renaissance Capital reported this week that it would be the largest software IPO on record based on the elevated pricing range.
See also: Five things to know about the Snowflake IPO
Snowflake uses database software that is used in the cloud, offering an essential piece of technology infrastructure in a new way. The offering has generated enough enthusiasm to attract investment from Berkshire, whose famed chief executive Warren Buffett has avoided young tech companies and IPOs for decades. In addition to the $ 250 million investment, Berkshire is buying more than 4 million shares at an IPO price from former Snowflake CEO Mercilia.
At the expense of the IPO, Snowflake was initially valued at $ 33.3 billion just eight years after its inclusion. The stock is expected to begin trading on the New York Stock Exchange on Wednesday morning.
Snowflake is one of a dozen companies it expects to go public this week by Uber Technologies Inc. The IPO will make it the busiest week for activity since UBER.
According to Renaissance, it went public in May 2019. JFrog FROG Ltd.,
Another software company was also expected to price its IPO on Tuesday.
For more: IPO market is poised for the busiest week from May 2019
Two other software companies, Unity Software Inc U,
And sumo logic sumo,
The IPO price is expected later this week. Other claims expected among the dozen include packaging company Pactiv Evergreen PTVE,
And telehealth company American Well Corporation AMWL,
Known as AmWell.