Snowflake Inc. produced a warm start to the busiest week for initial public offerings of more than a year.
priced its IPO at $ 120 per share. share on Tuesday night, which means it will raise at least 3.86 billion. $ in the offering and probably more than 4 billion. $. The company will sell 28 million shares to raise $ 3.36 billion, and Berkshire Hathaway Inc. BRK.A,
and Salesforce.com Inc. CRM,
agreed to simultaneously purchase $ 250 million in shares at the IPO. Underwriters, led by Goldman Sachs and Morgan Stanley, have access to an additional 4.2 million shares that could push the total collection to approx. $ 4.4 billion.
Judging by the price increase during the IPO process, the demand for these additional shares exists. After initially submitting an IPO less than a month ago, Snowflake declared an expected price range of $ 75 to $ 85 per share. Stock last week. On Monday, software company San Mateo, California, dramatically increased the range to $ 100 to $ 110 per share. Stock, after which it priced higher than the target on Tuesday night. Renaissance Capital reported this week that it would be the largest listed software registered, based on the increased price range.
See also: Five things to know about the IPO
Snowflake produces database software that is used in the cloud and offers a necessary piece of technological infrastructure in a new way. The offering has created enough excitement to attract investment from Berkshire, whose legendary CEO Warren Buffett has famously avoided young technology companies and IPOs for decades. In addition to the $ 250 million investment, Berkshire is buying more than 4 million shares for IPO from former Snowflake CEO Robert Muglia.
At the IPO price, Snowflake is initially valued at $ 33.3 billion just eight years after its incorporation. Shares are expected to begin trading Wednesday morning on the New York Stock Exchange.
Snowflake is one of a dozen companies expected to be listed this week, making it the busiest week of IPO activity since Uber Technologies Inc. UBER,
was published in May 2019 according to the Renaissance. JFrog Ltd. FROG,
another software company was also expected to price its IPO on Tuesday.
For more: The IPO market is taking advantage of the busiest week since May 2019
Two other software companies, Unity Software Inc. U,
and Sumo Logic SUMO,
is expected to price IPOs later in the week. Other offerings among the dozens expected include the packaging company Pactiv Evergreen PTVE,
and telecommunications company American Well Corp. AMWL,
known as AmWell.