Software company Snowflake doubles in value within minutes of its stock market debut on Wall Street
Magical Unicorn: Software company Snowflake increased in value by more than £ 50 billion on its stock market debut
Wall Street sensation Snowflake more than doubled in value last night within minutes of its debut in the stock market.
The software company is one of several ‘unicorn’ tech outfits to be on the list this year, and had shares priced at $ 120 under the ‘Snow’ ticker, worth £ 25 billion.
But when trading began yesterday, the stock opened at $ 245 as eager investors piled up, bringing the value to over £ 50 billion.
The float was set to become the largest in the US this year and stocks were almost immediately suspended by regulators due to volatility.
Based on the opening price, Snowflake would have a higher valuation than supply company Fedex, defense giant Northrup Grumman or General Electric.
The bonanza came just a day after fintech firm Klarna was individually valued at £ 8 billion in a fundraising round.
Also expected to be listed on the stock market, Klarna has quickly gained popularity for its ‘buy now, pay later’ service that allows online shoppers to pay for goods in installments.
Other technology companies set to make their market debut include accommodation provider Airbnb, data company Palantir and food delivery start-up Doordash.
California-based Snowflake technology helps large companies assemble and analyze massive databases. Supporters include Salesforce and Warren Buffett’s Berkshire Hathaway.
The float eclipses Royalty Pharma as the largest of 2020, underscoring a recovery in the US stock market after the pandemic prompted several companies to put their plans on hold.
Snowflake was valued at $ 12 billion (£ 9 billion) in February. Sales were up 174 percent to £ 204 million for the year to January 31, but losses nearly doubled to £ 268 million.