Data storage software company Snowflake has raised its estimated initial public offering price.
According to an updated S-1 filing, Snowflake has increased its IPO offering by 30%. Snowflake now expects to go public on September 16 at a share price of between $100 and $110. The company previously said that its shares would debut at between $75 and $85 a share.
The new price estimate values Snowflake at between $27.7 billion and $30.5 billion. The previous estimate range would have valued the company at between $20.9 billion and $23.7 billion. Snowflake’s IPO is likely to be one of the most popular debuts this year, with both Berkshire Hathaway (NYSE:BRK.A) and Salesforce (NYSE:CRM) agreeing to buy shares in the company.
Snowflake revealed in a filing that Berkshire Hathaway and Salesforce each agreed to buy $250 million of stock at the IPO price. Berkshire Hathaway also agreed to buy 4.04 million shares in a secondary transaction from former Chief Executive Officer Bob Muglia. At the midpoint of the new estimated price range, Berkshire Hathaway’s total stake in Snowflake after the IPO would be valued at $674.4 million.
Snowflake gives businesses new ways to store and access data in the cloud, rather than relying on databases tied to hardware. The company reported that revenue in the first half of 2020 more than doubled to $242 million from $104 million a year earlier.
Snowflake will trade on the New York Stock Exchange under the ticker symbol "SNOW."
