After Apple's latest product launch was completed, the town's new talk is another tech company – Snowflake Inc, an enterprise specialized in cloud computing services.
In just a few years, the California-based startup became a competitor of some industry behemoths like Microsoft and Amazon. After securing a prime slot in this sector, it's on its way to top another milestone – becoming a publicly-traded company. Given the buzz around its IPO and the vote of confidence received from one of the most prominent investors in the industry, Warren Buffett, Snowflake is on its way to raise the largest IPO in the US #software sector ever, according to ft.com.
According to data from Refinitiv, Snowflake's IPO is the biggest of this year and the largest in the US after the 2019 Uber IPO of $8.1 billion.
The buzz around it is sustained with results: in Q2, Snowflake revenue increased by 121% to $264.7 million, compared to last year's figures. Sales wise, it generates $55 billion per year.
As mentioned before, the investing guru Warren Buffett is taking a chance with Snowflake. Warren Buffett’s Berkshire Hathaway will purchase $250 million in stock alongside the flotation, and another $320 million from Snowflake’s former CEO, Bob Muglia.
So far, investors pledged to purchase 28 million shares at $120 each. The price could raise the company’s market cap at $33 billion.
Snowflake will start trading this Wednesday on the New York Stock Exchange, having the ticker SNOW.
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Sources: marketwatch.com, ft.com, fortune.com