Snowflake is priced above the IPO, a market cap of $ 33.3 billion

Frank Slotman, CEO of Snowflake


Snowflake, a provider of cloud-based data storage and analysis software, priced the IPO above its increased threshold in an offering that valued the company at $ 33.3 billion.

Snowflake is selling 28 million shares at $ 120 per piece, according to a person familiar with the matter, who was not named as the pricing has not been made public. The company, which is set to make its 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 parts of the year. Snowflake will raise approximately $ 3.4 billion from the offering.

Investors are bidding ahead of Snowflake’s offering as they expect a blockbuster opening for a company that is generating more than $ 1 billion in annual revenue and has grown more than 130% in the first half of the year. The company had already raised its anticipated first price range from $ 85 to a maximum of $ 110 in less than a week. Snowflake is growing with major public cloud vendors by providing the technology that clients need to analyze large amounts of data and increase capacity rather than relying on hardware-bound databases.

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. Based on the IPO price, Berkshire will pay $ 484.8 million for those shares.

Snowflake is entering a market that is hungry for high-growth cloud software manufacturers, particularly those who have shown the ability to continue expanding through the coronovirus epidemic. Even after pulling back this month, the BV Nasdaq Emerging Cloud Index consisting of more than 50 publicly traded companies, compared to 25% gain for Nasdaq and 5.3% in advances to the S&500, is about 55% this year. .

Zoom’s stock is up over 500% in 2020, and has rapidly jumped over 300%. Documents, Shopify and Datadog have more than doubled.

Watch: Here’s what snowflake is all about