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Snowflake Inc IPO raises $3.36 billion in year's biggest US listing

The IPO, which was priced at $120 per share, values the cloud-based data warehouse firm at north of $30 billion

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IPOs

Reuters  |  NEW YORK 

IPO, shares, company, firms, market
Representative image

By Anirban Sen and Joshua Franklin

NEW YORK (Reuters) - Snowflake Inc said late on Tuesday that its initial public offering raised $3.36 billion after it was priced above the target range in the biggest U.S. listing so far this year.

The IPO, which was priced at $120 per share, values the cloud-based data warehouse firm at north of $30 billion.

San Mateo, California-based Snowflake said on Monday it was aiming to sell 28 million shares at $100 to $110 per share after its expected pricing was raised from a range of $75 to $85 per share last week.

Snowflake's IPO eclipses that of Royalty Pharma , which so far was the biggest IPO of 2020, and underscores the recent rebound in the U.S. market for new stocks after the COVID-19 pandemic prompted several to put IPO plans on hold.

Snowflake confidentially filed to go public earlier this year, shortly after its last funding in February that valued it at over $12 billion. Venture capital firm Sequoia owned an 8.4% stake in the company before the offering.

Snowflake's revenue jumped 173.9% to $264.7 million for the full year ended Jan. 31, though its net loss nearly doubled to $348.54 million.

The company's shares are set to start trading on the New York Stock Exchange on Wednesday under the ticker "SNOW," and the offering is expected to close on Sept. 18.

Goldman Sachs, Morgan Stanley, J.P. Morgan, Allen & Co and Citigroup are the lead underwriters for the offering.

 

(Reporting by Anirban Sen in Bangalore and Joshua Franklin in Boston; additional reporting by Aakriti Bhalla, Editing by Cynthia Osterman, Tom Brown and Anil D'Silva)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Wed, September 16 2020. 10:22 IST
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