Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Snowflake shares soar 115% in red-hot IPO, minting three new billionaires

Snowflake shares soar 115% in red-hot IPO, minting three new billionaires



Cloud database firm Snowflake opened trading Wednesday at more than double its list price, making CEO Frank Slootman, ex-CEO Bob Muglia and co-founder Benoit Dageville billionaires.

As public market investors complain about stakes in cloud computing standout Snowflake, the company̵

7;s oversized first-day stock performance has created several billionaires from its current and former executives.

Shares of Snowflake opened at $ 245 on Wednesday, more than double the California company’s list price of $ 120. After several hours of delay as bankers sought a price the company wanted enough sellers to open, trading was briefly stopped at $ 276 , moments after it opened. Shares traded at $ 258.42 from 6 p.m. 13 EDT on Wednesday, giving Snowflake a market value of nearly $ 71 billion.

Founded in San Mateo, California, in 2012 by Benoit Dageville, Thierry Cruanes and Marcin Zukowski, Snowflake had previously raised money from private investors in February 2020 for an estimated $ 12.4 billion. $. The company, which offers a virtual data lake or an easily searchable software layer between cloud providers like Amazon, Google and Microsoft and customers’ own programs and apps, generated such a buzz by reporting revenue of $ 264.7 million for the fiscal year ending it January 31 and $ 242 million in the six months ended July 31, an increase of 174% and 133%, respectively, while industry-leading net revenue of 158% was delivered.

As CEO and Chairman, Slootman stood to win big in the IPO, although a majority of his stake in Snowflake includes uninvested options, as described in the S-1 prospectus. Slootman was called out of a retirement used in elite sailboat races and had previously taken two companies publicly: Data Domain and ServiceNow. His most recent payday is set to dwarf both. Apart from uninvested options, Slootman owns approximately 5.3 million shares in Snowflake, a share worth $ 1.4 billion. Dollars pr. 13.00 EDT. It adds to the estimated $ 394 million in (after-tax) stock sales that Slootman accumulated during his six-year tenure as CEO and chairman of ServiceNow. With Snowflake’s first day performance, Slootman now carries a net value of $ 1.8 billion, and much more will be added if he stays long enough for his remaining options for millions of more shares to be earned.

However, the biggest individual winner in Snowflake’s IPO is co-founder Dageville, who remains in the company as its chief technology officer. Apart from uninvested options, Dageville’s 3.5% stake means he owns 8 million shares in the company, a stake worth $ 2 billion. At a stock price of $ 258.

And while Muglia suddenly had to give way to Slootman’s arrival as CEO in 2019, the former CEO of Snowflake, who helped take it out of hiding and raise its early venture capital funding rounds over nearly five years at the company, has also reached billionaire status on because of his Snowflake shares. Muglia now owns a 1.7% stake in Snowflake after entering into an agreement with Warren Buffett’s Berkshire Hathaway to sell half of its position at the $ 120 price per share. Share of the listing. Muglia earned an estimated $ 340 million (after tax) on this sale today, even though the shares he sold have already more than doubled in value since. Add it to his remaining share worth $ 1 billion. At a share price of $ 258, and Muglia’s net worth is 1.4 billion. $.

Of course, many more employees and investors are ready to redeem large payouts from Snowflake’s quick appreciation on the New York Stock Exchange if it has such value or even close to it when lockup periods expire later in the fall. With 49.5 million shares of Snowflake at IPO, Sutter Hill Ventures now sits at a position worth nearly $ 13 billion at the share price of $ 258. Others, including altimeter partners, ICONIQ, Redpoint Ventures, Sequoia and Dragoneer, can make money on several billion billion.


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