Startup Snowflake held the largest IPO in the history of software companies: Warren Buffett estimated

Technology company Snowflake has held the largest IPO in the history of software development. Snowflake was valued at $ 44 billion before being listed. As a result, the startup was able to raise $ 3.4 billion.

At the beginning of trading, the price of shares of Snowflake soared by 166 percent and amounted to 310 dollars per unit. Moreover, the interest of investors was fueled by the news that one of the investors is Warren Buffett, says Inc.

Initial Public Offering
Initial placement (offer) of securities on the stock exchange. In this way, additional funds are attracted for business development. After appearing on the stock market, the organization changes from private to public. In other words, an IPO is a way to make millions and tell the world about your company.

So, just a week before the placement of Snowflake, it became known that the shares of the startup for $ 120 will buy and Berkshire Hathaway, owned by Warren Buffett. The total investment of the companies is $ 500 million – $ 250 million each.

In addition, Warren Buffett also bought 4 million shares from one of the shareholders of Snowflake for $ 323 million. Yes, after the deal, Berkshire Hathaway Inc. earned about $ 1 billion. Previously, the peak value of the share was $ 319.

Underwriters, including Goldman Sachs and Morgan Stanley, received an option to buy another 4.2 million shares of Snowflake. If implemented, the company’s IPO volume will approach $ 4.4 billion.