Snowflake is expected to raise IPO price to $ 30 billion


Snowflake CEO Frank Slotman, so far right, addresses the team in an all-hands meeting.

Courtesy of snowflake

As of an updated S-1 filing Monday, data collection software company Snowflake has increased its estimated IPO value by almost 30% since the previous week. Snowflake’s IPO is one of the most popular debuts this month, with both Berkshire Hathaway and Salesforce agreeing to buy shares in concurrent private sales.

Now according to the film Snowflake expects to debut for the first time at a share price between $ 100 and $ 110. In its final filing on September 8, the company said its shares would likely cost between $ 75 and $ 85.

The new price estimates will value Snowflake between $ 27.7 billion and $ 30.5 billion. The previous estimate range would be snowflakes between $ 20.9 billion to $ 23.7 billion.

Last week, Snowflake revealed in a filing that Berkshire Hathaway and Salesforce each agreed to buy $ 250 million of stock at an IPO price in a concurrent private placement. Berkshire Hathaway agreed to buy 4.04 million shares in a secondary transaction from former CEO Bob Muglia. At the midpoint of the new projected price range, Berkshire Hathaway’s total stake in Snowflake after the IPO would be $ 674.4 million, which would be worth the midpoint of the previous range, compared to about $ 550 million.

Snowflake gives businesses new ways to store and access data in the cloud rather than relying on hardware-bound databases. The company is growing rapidly, reporting that revenue in the first half of 2020 has doubled from a year earlier to $ 104 million to $ 104 million. However, it faces a complex relationship with Amazon Web Services – it relies on AWS to host a significant portion of its business, while also competing against its Redshift cloud data warehouse offering.

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