Snowflake’s shares doubled in value after the first day on the stock exchange. At the end of the day, Snowflake shares had a price of $253.93 (215.20 euros), making the company worth around $70 billion.
The original price at the time of the IPO was $120 per share. This price was the result of previous increases. Because the share value at the end of the day was more than 250 dollars, Snowflake became the ‘most valuable software startup in an IPO’.
A lot was already expected from Snowflake’s IPO, due to the company’s rapid growth. It recently achieved a year-on-year growth rate of 133 percent. “This is just one day. Things will normalize and shake out and become more settled as time moves on,” says Snowflake CEO Frank Slootman.
The company sells 28 million shares at the time of its IPO, raising 3.4 billion dollars. Initially, it was valued at 30 billion dollars, but now it has reached 70 billion dollars.
Before the IPO, Salesforce and Berkshire Hathaway (of Warren Buffett) reached an agreement to buy shares. Both parties would buy 3.125 million shares. In addition, Berkshire Hathaway bought another 4.04 million shares from former CEO Bob Muglia. Warren Buffett’s investment company earned 800 million dollars in one day with Snowflake shares as a result of the share increase.