Why Jim Cramer's Action Alerts PLUS Is Considering Buying Snowflake

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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.

The 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 multi-cloud environments that enterprises increasingly rely on.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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