Buffett’s first IPO in huge demand

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.

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