But demand was so strong that shares finally wound up opening early Wednesday afternoon at $245 a share and quickly climbed above $300, for a 150% gain. Shares pulled back a bit as the day wore on but still finished the day with a nearly 112% gain.
At its closing price of just under $254, Snowflake is valued at $70 billion.
No clouds on the IPO horizon
Still, the Snowflake debut doesn’t come close to making the ranks of the biggest IPOs of all time.
Snowflake helps blue chip companies analyze and share data in the cloud.
Snowflake CEO Frank Slootman and other company executives are among the top individual investors in the company. Prominent venture capital firms Altimeter Capital, ICONIQ Capital, Redpoint Ventures, Sequoia and Sutter Hill also own significant stakes in the company.
Snowflake disclosed last week that Salesforce, the cloud giant that was recently added to the Dow, and Buffett’s Berkshire Hathaway would each buy $250 million in Snowflake stock in a private placement following the IPO.
Snowflake is not a typical Berkshire play, because it is not yet profitable, even though sales are growing rapidly.
Revenue more than doubled in the past six months, to $242 million. But the company posted a net loss of $171 million, slightly less than the loss it posted in the same period a year ago.
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