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Snowflake shares more than double in U.S. debut, valuation crosses $80 billion

Kitco News

(Reuters) - Sequoia-backed Snowflake Inc's SNOW.N shares more than doubled in value in a volatile debut on the New York Stock Exchange, after the cloud-based data warehouse company raised $3.36 billion in the largest U.S. IPO so far in 2020.

Shares of the San Francisco-based company opened at $245 per share, but the trading was briefly halted. As it resumed, the price surged 141% to $290, valuing the firm at over $80 billion.

The company’s IPO price was $120, which was also well above the offer price range of $100 to $110.

The company, backed by Warren Buffett-led Berkshire Hathway Inc BRKa.N and venture capital firm Salesforce Ventures LLC, had raised $3.36 billion in the largest U.S. IPO so far in 2020, selling 28 million shares.

Snowflake’s debut comes in the middle of a massive boom in U.S. capital markets following a rebound in demand for new listings, after the COVID-19 pandemic forced many companies to put off their plans to go public earlier this year.

Prior to Snowflake, Royalty Pharma RPRX.O and Warner Music Group Corp WMG.O had the biggest stock market debuts this year.

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

Reporting by C Nivedita in Bengaluru and Joshua Franklin in Boston; Additional reporting by Niket Nishant; Editing by Arun Koyyur

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