Dhe software company Snowflake raised $ 3.36 billion in the largest initial public offering of the year in the United States. The issue was extremely successful in that Snowflake was able to sell its shares for $ 120 each. The company initially offered this for $ 75 to $ 85 and increased this range to $ 100 to $ 110 on Monday.
The issuance of 28 million shares is the largest public offering in the United States this year, apart from the four billion billionaire Bill Ackman took with a special purpose vehicle. Snowflake is valued at more than $ 33 billion when it goes public.
The company from San Matteo, California offers cloud-based data storage and analysis services. Part of the successful IPO is the fact that renowned investor Warren Buffett invested in a newcomer for the first time. Its holding company, Berkshire Hathaway, had committed to buying $ 250 million in common stock in a private placement. In addition, Berkshire plans to acquire four million shares in a further transaction.
Snowflake was founded in 2012 and in its fiscal year ended in January, sales increased by 174 percent year-on-year to $ 264.7 million. In the next six months, revenues increased 133 percent over the same period last year to $ 242 million. Snowflake shares are expected to go into trading on Wednesday.
Another 15 IPOs are pending this week. The financial information service Bloomberg puts their total value at 8.3 billion dollars.