Make Kitco Your Homepage

Snowflake to sell shares above target in year's biggest U.S. IPO: source

Kitco News

NEW YORK (Reuters) - Snowflake Inc SNOW.N expects to sell shares in an initial public offering on Tuesday at around $120 apiece, above its target range, to raise more than $3 billion in the biggest U.S. listing so far this year, according to a person familiar with the matter.

The cloud-based data warehouse firm on Monday said it was aiming to sell 28 million shares at $100-$110 per share, revised upward from $75-$85 last week.

The IPO values San Mateo, California-based Snowflake at north of $30 billion. Snowflake declined to comment.

It is the largest U.S. IPO of 2020, eclipsing Royalty Pharma RPRX.O, and is yet another sign of the recent rebound in the U.S. market for new stocks after the COVID-19 pandemic prompted several companies to put IPO plans on hold.

Snowflake confidentially filed to go public earlier this year, shortly after its last funding in February that valued it at over $12 billion. Venture capital firm Sequoia owned an 8.4% stake in the company before the offering.

Snowflake’s full-year revenue for the period ended Jan. 31 jumped 173.9% to $264.7 million, though its net loss nearly doubled to $348.54 million.

The company’s shares are set to start trading on the New York Stock Exchange on Wednesday under the ticker “SNOW.”

Goldman Sachs, Morgan Stanley, J.P. Morgan, Allen & Co and Citigroup are the lead underwriters for the offering.

The Wall Street Journal reported news of the pricing earlier.

Reporting by Anirban Sen in Bangalore and Joshua Franklin in Boston; Editing by Cynthia Osterman and Tom Brown

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.