US-based data analysis software provider Snowflake is going public today in a $3.36bn initial public offering alongside include a $250m investment by enterprise software producer and existing investor Salesforce.
The company priced 28 million shares at $120.00 each, above a $100 to $110 range that had already been lifted from $75 to $85 a share. It will float on the New York Stock Exchange.
Salesforce subsidiary Salesforce Ventures and investment holding company Berkshire Hathaway are each providing $250m for Snowflake through a private placement that will take place concurrently to the offering.
Founded in 2012, Snowflake has built a cloud software platform that enables users to unify large amounts of data that is siloed in different places, combine it with new data and analyse it in a variety of ways.
The company has more than 3,100 customers and more than doubled revenue to $242m in the first half of this year, though its net loss only fell slightly, to $171m, in the same period.
The offering will value Snowflake at $28.9bn, a considerable jump from the $12.4bn at which it last raised money, in a $479m series G round co-led by Salesforce Ventures and investment firm Dragoneer that closed in February this year, taking its overall funding to $1.3bn.
Altimeter Capital, Redpoint Ventures, Sequoia Capital, Iconiq Capital, Madrona Venture Group and Sutter Hill Ventures also contributed to the February round.
All six had also backed the company’s $450m series F round in October 2018 at a $3.95bn valuation alongside Capital One Growth Ventures, a vehicle for financial services firm Capital One, as well as Meritech Capital and Wing Ventures.
Iconiq Capital, Altimeter Capital and Sequoia Capital had co-led a $263m round for Snowflake nine months earlier that also featured Capital One Growth Ventures, Madrona Venture Group, Redpoint Ventures, Sutter Hill and Wing Ventures at a $1.5bn pre-money valuation.
The series E investors had previously taken part in Snowflake’s $105m series D round in 2017 with Altimeter Capital, an existing investor like Redpoint Ventures, Sutter Hill and Wing Ventures.
Neither Salesforce Ventures nor Capital One Growth Ventures owned a 5% stake prior to the offering. Snowflake’s largest investors are Sutter Hill (a 17.4% stake post-IPO), Altimeter Capital (15.1%), Iconiq Capital (14%), Redpoint Ventures (9.1%) and Sequoia Capital (8.6%).
Goldman Sachs, Morgan Stanley, JP Morgan, Allen & Company and Citigroup are lead book-running managers for the offering while Credit Suisse, Barclays, Deutsche Bank Securities, Mizuho Securities and Truist Securities are book-running managers.
BTIG, Canaccord Genuity, Capital One Securities, Cowen, DA Davidson & Co, JMP Securities, Oppenheimer, Piper Sandler, Stifel, Academy Securities, Loop Capital Markets, Ramirez & Co and Siebert Williams Shank are co-managers for the IPO.
The underwriters have the chance over the next 30 days to buy up to 4.2 million more shares, which would boost the size of the offering to more than $3.86bn.
