Snowflake boosted its target price range for its forthcoming initial public offering by 30%. In an updated S-1 filing, the cloud data warehouse startup says that they look forward to selling their shares for $100 to $110 per share.
The update brings up the target from an initial target of $75 to $85. CNBC, which first spotted the filing, said that this new price projection per share would give the company a massive market capitalization of between $27.7 billion and $30.5 billion.
The company, which operates out of San Mateo, California, expects that the price increase will pique Wall Street’s interest.
Prominent investors are taking an interest
Already, they have caught the interest of two strong investors (Salesforce.com Inc. and Berkshire Hathaway). The two behemoths agreed to buy $250 million worth of Snowflake stock in a private sale.
Under the leadership of CEO Warren Buffet, Berkshire Hathaway signed a deal to buy an additional 4.04 million shares from Bob Muglia, the former Snowflake CEO.
Snowflake’s cloud data warehouse offers enterprises the perk of centralizing data from multiple systems in one environment to be easier to access. More than 3100 organizations subscribed to the service as of July 31st, including 146 firms on the Fortune 500 list.
Incredible planned growth
After an increase in demand in the first half of this year, its revenue reached $242 million. Snowflake, just like many of the other tech firms that have filed for an IPO, is not profitable. However, its margins are changing in its favour, and it is narrowing its losses.
Snowflake claims that it is processing more than 500 million data warehouse queries every day. Because of how much it depends on the cloud infrastructure, the company plans to spend $1.2 billion between August 2020 and July 2025 on cloud services.
Its estimation of its market is about $81 billion.
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