Snowflake raises estimated IPO price by nearly 30%

According to an updated S-1 filing on Monday, Snowflake rose its estimated IPO price to nearly 30%.

The data storage software company’s initial public offering (IPO) is set to become one of the popular debuts among other tech IPOs in September. Snowflake is without any doubt attracting top investors including Salesforce and Berkshire Hathaway which have both agreed to buy Snowflake’s shares in concurrent private sales.

According to Snowflake’s filing last week, both Berkshire Hathaway and Salesforce agreed to each buy $250 million worth of stock in the IPO. For Berkshire, this would be in addition to the 4.04 million shares he agreed to buy from former CEO Bob Muglia, in another transaction. Berkshire’s total stake in Snowflake will amount to $674.4 million, rather than the supposed $550 million.

Snowflake has a target share price within the range of $100 to $100 when it goes public, according to the updated filing. In its previous filing on September 8, the data storage company considered a $75 to $85 range.

With its new price estimate, Snowflake’s value would be between $27.7 billion and $30.5 billion. This is compared to its last filing which would have valued the company between $20.9 billion and $23.7 billion.

Snowflake Stock Symbol: SNOW

About the Company

Snowflake is a data storage software company that provides businesses with new ways to store and access data in the cloud, providing them with a better alternative to storing databases in hardware. The company is a fast-growing tech company. It reported double its revenue in the first half of the year from its revenue at the beginning of the year. The company saw more than a 100% increase from $104 million earlier in the year to $242 million by the first half of the year.

Snowflake’s biggest concern is its complicated relationship with e-commerce giant and cloud-storage company Amazon considering that it heavily relies on Amazon Web Services (AWS) to host a significant part of its businesses. The company is also in competition with Amazon’s Redshift cloud data warehouse offering.

What you need to know about Snowflake IPO

• It's a cloud-based data management company
• 28M shares at $120
• Prior price talk was between $75 - 85, but the stock may open over $110
• Snowflake IPO halted for Volatility
• Snowflake Inc (SNOW) is estimated to open over $276 (156 %)
• The company CEO is Frank Slootman