Snowflake launches largest IPO in software history

The technology company Snowflake has held the largest software IPO in history. Before the listing on the stock exchange, Snowflake was valued at $ 44 billion. As a result, the startup managed to raise $ 3.4 billion, writes the Innovation 24 website.

At the start of trading, Snowflake’s shares soared 166% to $ 310. Investor interest was fueled by the news that Warren Buffett is investing in the company.

So, literally a week before the Snowflake placement, it became known that the startup’s shares at a price of $ 120 would be acquired by Salesforce.com and Berkshire Hathaway, owned by Warren Buffett. The total investment of the companies is $ 500 million – $ 250 million each.

We add that Warren Buffett also acquired 4 million shares from one of the Snowflake shareholders for $ 323 million. So, after the deal, Berkshire Hathaway Inc. earned about $ 1 billion dollars. Previously, the peak value of the share was $ 319.

The placement underwriters, including Goldman Sachs and Morgan Stanley, received an option to buy an additional 4.2 million shares of Snowflake. If implemented, the volume of the company’s IPO will approach $ 4.4 billion.

Recall that Snowflake was founded in 2012 and provides cloud storage services and analysis. Initially, during the IPO, the startup planned to raise $ 2.74 billion.