Salesforce and Berkshire Hathaway Buy Into Snowflake IPO

Snowflake plans to sell 28 million shares at between $75 and $85 each in an initial public offering.

Snowflake said it plans to sell 28 million shares at between $75 and $85 each in an initial public offering, valuing the cloud-data company at as much $23.7 billion.

Its last private valuation was $12.4 billion in February.

Berkshire Hathaway  (BRK.A) - Get Report and Salesforce Ventures, a division of  (CRM) - Get Report, each will buy $250 million the company’s Class A common stock in a private placement. 

Berkshire Hathaway also agreed to buy 4 million shares in a secondary transaction, according to a regulatory filing, which was reported by Bloomberg.

Silicon Valley-based Snowflake filed confidentially for an IPO back in June. The cloud specialist could be one of the larger tech offerings to go public this year.

Snowflake is part of an emerging niche of cloud companies that address the multi-cloud environments that enterprises increasingly rely on: Amazon's  (AMZN) - Get Report AWS, Microsoft  (MSFT) - Get Report Azure, Google  (GOOGL) - Get Report Cloud Platform or others may be used for different workloads, and enterprises need services that allow for flexibility. 

Snowflake sells data warehousing and analytics services that permit cross-cloud integration, and it has particularly caught fire over the last year. 

Okta, 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. Snowflake also counts several cloud heavyweights - AWS, Azure, Salesforce and many others - among its base of customers and partners. 

Snowflake will be going public at a time when the cloud services are more relevant than ever, given how the Covid-19 pandemic has impacted demand for new technology.