Snowflake set to price as the highest valued software IPO—Here’s what to know about the company

Snowflake is set to be the highest valued software IPO. CNBC’s Leslie Picker reports on the company’s financials and the unusual interest from Berkshire Hathaway, which hasn’t invested in an IPO since Ford in 1956. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

Data storage software company Snowflake has raised its estimated IPO price by around 30% since last week, according to an updated S-1 filing Monday.

Snowflake’s initial public offering is on track to be one of the most popular debuts in a flurry of tech IPOs this month, with both Berkshire Hathaway and Salesforce agreeing to buy shares in concurrent private sales.

Snowflake now expects to go public at a share price between $100 and $110, according to the filing. In its last filing on Sept. 8, the company said its shares would likely debut between $75 and $85.

The new price estimate would value Snowflake at between $27.7 billion and $30.5 billion. The previous estimate range would have valued the company at between $20.9 billion and $23.7 billion.

Last week, Snowflake revealed in a filing that Berkshire Hathaway and Salesforce each agreed to buy $250 million of stock at the IPO price in a concurrent private placement. Berkshire Hathaway also agreed to buy 4.04 million shares in a secondary transaction from former CEO Bob Muglia. At the midpoint of the new estimated price range, Berkshire Hathaway’s total stake in Snowflake after the IPO would be valued at $674.4 million, compared with the roughly $550 million it would have been worth at the midpoint of the previous range.

Snowflake gives businesses new ways to store and access data in the cloud, rather than relying on databases tied to hardware. The company is growing fast, reporting that revenue in the first half of 2020 more than doubled to $242 million from $104 million a year earlier. However, it faces a complicated relationship with Amazon Web Services — it relies on AWS to host a significant portion of its business, while also competing against the Amazon Redshift cloud data warehouse offering.

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