Home / Business / Buffett-backed cloud unicorn Snowflake earns $ 3.4 billion in record-breaking software IPOs

Buffett-backed cloud unicorn Snowflake earns $ 3.4 billion in record-breaking software IPOs

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  • Snowflake, backed by a billionaire investor, said it will raise $ 3.4 billion in the largest software IPO ever, giving it a value of over $ 33 billion.
  • The cloud-data platform will sell 28 million shares at a price of $ 120 each.
  • Snowflake plans to go public on the New York Stock Exchange under the symbol “SNOW” from September 16.
  • Its long-awaited IPO managed to capture the attention of billionaire investor Warren Buffett, who agreed to invest over $ 550 million in the company after it went public.
  • Visit the Business Insider home page for more stories.

On Wednesday, cloud startup Snowflake raised a record $ 3.4 billion in the largest initial public offering ever for a software company on Wednesday, kicking off a big week for tech companies going public this week.

The cloud-data warehousing startup announced it is selling 28 million shares worth $ 120 each, meaning it would raise nearly $ 3.4 billion in revenue.

Snowflake, which was valued at $ 12.4 billion during its latest fundraising round in February and includes billionaire investor Warren Buffett among its backers, plans to list its shares on the New York Stock Exchange under the symbol ” SNOW “from 16 September.

The highly anticipated IPO of the San Mateo-based company managed to generate surprise excitement from Buffett, who notoriously shuns tech stocks.

Business Insider previously reported that Buffett had agreed to invest up to $ 550 million in the cloud data company once it was made public.

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Snowflake is the largest software IPO ever recorded, according to Renaissance Capital, and the largest since Uber’s $ 8.1 billion listing in May 2019.

It has emerged as one of the strongest players in cloud-data warehousing, particularly this year, as the pandemic has forced millions of people to work remotely, fueling an already growing trend among companies to network on web-based platforms. .

The company was reportedly aiming for a valuation of $ 20 billion. In total, Snowflake raised $ 1.4 billion from investors including Sequoia and ICONIQ Capital.

Snowflake has approximately 3,100 customers, including 56 customers who contributed approximately $ 1 million over a 12-month period.

Before the company went public, Ray Wang, an analyst at Constellation Research, said: “It will be the successful company listing for 2020”.

Other technology IPOs expected to debut this week include video game software company Unity, which is expected to raise $ 950 million, and data-software platform Sumo Logic, which is expected to raise $ 281 million.

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