Snowflake looks to raise about $2.38 billion from its US float

Platform News: Wall Street in New York

Snowflake Inc, backed by the venture capital business Sequoia, said it expects to raise approximately $2.38 billion in its initial public offering in the US, about two weeks after it created its financial documents public.

The cloud-based data warehouse business set a price target of between $75 and $85 per share because of its own sale of 28 million shares.

Berkshire Hathway and Salesforce Ventures, each, agreed to purchase $250 million of its stocks at a private arrangement, Snowflake said.

Snowflake confidentially filed to go public earlier this year, soon after its last funding in February that appreciated it in over $12 billion. Sequoia possessed a stake of some 8.4% in the company prior to the offering.

The debut will mark still another marquee IPO for a Silicon Valley start-up, even as all eyes are on Airbnb, Palantir and DoorDash, all expected to go public sometime before the end of the year.

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The Silicon Valley unicorns are wanting to ride the magnificent recovery in US capital markets in the coronavirus pandemic that before this season forced several companies to postpone their introduction.

Snowflake posted a 173.7% year-on-year jump in earnings to $264.7 million to the financial year ended January, but its net loss nearly doubled to some $348.54 million.

Snowflake plans to list on the New York Stock Exchange under the memorable ticker SNOW.

Goldman Sachs, Morgan Stanley, JP Morgan, Allen & Co and Citigroup are one of the underwriters for the offering.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Neha Malara in Bengaluru. Editing by Maju Samuel.

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