September 28, 2020

Cloud-based data company Snowflake Inc. is expected to be valued at $23.7 billion – almost double its $12.4 billion valuation in February 2020 – following an IPO and private investments by Berkshire Hathaway and Salesforce.com.

Snowflake Inc.’s S-1 filing said it planned to offer 28 million shares at between $75 and $85 per share. At the upper limit of this range, the company would raise $2.7 billion from its IPO.

Berkshire Hathaway Inc. and Salesforce Ventures, a subsidiary of Salesforce.com Inc., have each agreed to buy $250 million worth of Snowflake Inc.’s Class A shares in a concurrent private purchase at the IPO per-share price.

Berkshire Hathaway will also acquire 4.04 million Snowflake Inc. Class A shares from an existing shareholder at the IPO per-share price in a further private purchase following its initial investment.

If Snowflake Inc.’s IPO shares are listed at $85, these investments would push the company’s valuation to almost $24 billion.

In February 2020, Snowflake Inc. was valued at $11.9 billion ahead of a private funding round that raised $479 million, raising its valuation to $12.4 billion. 

The company’s S-1 filing reports higher revenue and lower losses for H1 of 2020 compared to H1 of 2019. Snowflake Inc. reported $242 million in revenue and $171 million in losses in the six months up to 31 July 2020, against $104 million in revenue and $177 in losses over the same period in 2019.

Snowflake counts 146 of the Fortune 500 companies among its clients, its IPO filing states.

Snowflake’s shares will be listed on the New York Stock Exchange under SNOW. The IPO is offered through Morgan Stanley and Goldman Sachs Group Inc.

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Snehal Shah