Snowflake (NYSE: SNOW), a cloud-based data-warehousing startup, skyrocketed 105% Wednesday during its first day of trading in the biggest software IPO ever. The stock commenced trading at USD245 a share prior to being halted due to high volume.
On Tuesday the company valued shares at USD120, above the anticipated USD100 – USD110 sphere and much higher than the USD75 to USD85 it suggested within a report a week ago. Upon Snowflake’s initial trading at USD245 per share, its value went up to USD67.94 Billion from the USD12.4 Billion it was appraised at in February of this year.
“A stock is worth exactly what somebody wants to pay for it,” CEO Frank Slootman told CNBC just after the stock began trading. “It’s like talking about the weather, it is what it is. Tomorrow’s another day, we’ll see what it brings.”
The company sold 28 million shares and acquired almost USD3.4 Billion in the IPO. As the share price jumped to USD300, Snowflake is now worth approximately USD83 Billion.
Investors had previously guessed the explosive opening as the company generates more than USD500 Million annually and shot up 130% in the beginning of 2020. Furthermore, the company revealed that Berkshire Hathaway and Salesforce would both be buying USD250 Million worth of stock at the IPO price within a concurrent private placement.
Snowflake is one of various “unicorn” startups predicted to go public before the end of 2020, including Airbnb, Palantir and DoorDash.
Written by Rebecca Urena.
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