Snowflake Boosts IPO Price Range to $100- $110

Cloud services company Snowflake lifted the estimated price range of its IPO to $100 to $110 a share from $75 to $85.
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Cloud-services company Snowflake said Monday that it boosted the expected price range of its initial public offering to $100 to $110 a share from $75 to $85.

Snowflake plans to offer 28 million shares, which would put the IPO total at $2.8 billion to $3.08 billion. 

The underwriters have an option to buy an additional 4.2 million shares, which would bring in another $420 million to $462 million.

The midpoint of the new price range would mean a valuation of more than $29 billion for Snowflake, which sells storage, computing, and cloud services to enterprises looking for efficient ways to manage data.

Snowflake recently received a vote of confidence from Salesforce  (CRM) - Get Report and Berkshire Hathaway  (BRK.B) - Get Report, each of which opted to invest $250 million.

The San Mateo, Calif., company isn’t profitable: For the six months ended July 31 Snowflake reported a loss of $171.3 million against a loss of $177.2 million in the year-earlier period. 

Its financial disclosures show revenue for the period more than doubled to $242 million from $104 million.

Snowflake will list on the NYSE under the ticker SNOW.

It could be one of the larger tech offerings to go public this year. It’s part of an emerging niche of cloud companies that address the multicloud environments that enterprises increasingly rely on.

Snowflake has particularly caught fire over the past year. Okta,  (OKTA) - Get Report which publishes an annual report on the growth of enterprise apps, cited Snowflake as the fastest-growing app in 2019, with 273% growth among Okta customers and their network of app integrations.