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