Initial public offerings or IPOs are known as a great way for investors to get good returns in a relatively short time. On average, they can bring investors 40% in the first 3 months. Once the initial funding stages are out of the way, IPOs can be a great way for companies to sell their shares on the open market and raise more capital to continue their growth. If you’re into cloud technology, you may have asked yourself, “is Snowflake publicly traded?” Read on to find out about Snowflake stock IPO and all the important information about Snowflake IPO date and price.
Snowflake is a company that specialises in cloud computing and data warehousing. It was founded in 2012 by Marcin Zukowski, co-founder of Vectorwise, Benoit Dageville and Thierry Cruanes who earlier worked at Oracle. What united the three was love of cloud computing and the decision to live and work outside of Silicon Valley, in San Mateo, California.
In 2021, the company’s executive office was moved to Bozeman, Montana after a statement that the company no longer had a corporate headquarters because its employees are based all around the world.
After working for two years in secret, the platform was launched publicly in October 2014, and by 2015 Snowflake was already used by 80 different organizations.
Snowflake’s cloud technology is even being used by the tech giants — Amazon’s S3 has been using it since 2014, Microsoft’s Azure since 2018, and in 2019 Google Cloud began to use it as well.
After making the platform public, Snowflake held multiple public funding rounds, raising over 1.4 billion in total from VCs. After raising $479 million in Series G round in 2020, the company became a “decacorn” valued at $12.5 billion by investors.
By this point the management must have been asking themselves, “when is Snowflake going public?” to take the company to new heights.
Read on to find out about Snowflake IPO 2020 and other key info.
Snowflake Public Listing Key Data and IPO Date
Snowflake IPO Date: September 16, 2020
IPO stock price: $120
Valuation at IPO: $12.5 billion
Market cap (24/8/22): $50 billion
CEO: Frank Slootman
Snowflake launched its IPO on the NYSE on September 16, 2020 and began trading under the stock symbol SNOW.
The initial offering became one of the largest software IPOs in history, raising $3.4 billion.
The Snowflake IPO price was set at $120 but soared to $275 within minutes of trading. The first day closed at $253.93, giving the company a valuation of over $60 billion.
It’s important to note that despite the bear market the company’s current market value is $50 billion, so some IPOs do stand the test of time.
CEO Frank Slootman, who owned 5.3 million shares at the time of the IPO, reached a net worth of $1.4 billion on the first day of trading. The stock price has been through many ups and downs since their IPO date, but Slootman’s net worth has only increased and is estimated at $2.2 billion.
Unlike many other companies going public in 2020-2021, Snowflake launched a traditional IPO instead of merging with a special purpose acquisition company (SPAC).
There was a bit of a SPAC boom in these two years as this makes the IPO process cheaper and easier, but after the was a big correction for tech stocks, many SPACs failed. In fact, most IPOs failed in general. But this isn’t true about Snowflake.
So What About Investing Now?
The Snowflake IPO became the biggest software IPO ever, and the SNOW stock is doing fairly well despite the current bear market for tech stocks.
As the demand for cloud technology is growing, and more people and businesses are paying to have more storage, this leads to increased revenues for companies that provide services in this industry. There is every reason to believe Snowflake will do well over time, and that the current stock price of $190 a bargain and SNOW has every sign of being a good growth stock once we enter the next bull market.
Investing in IPOs is much more risky than investing in stocks, or better, building a balanced portfolio of stocks in an industry you know or believe in.
Investments like IPOs are speculative and much riskier than big companies with proven business models, robust earnings, and potential to scale. While it’s fun to try, don’t rely on IPOs to bring you money, timing the market is hard.
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When is the Snowflake IPO date?
The Snowflake stock IPO date was September 16, 2020.
Is Snowflake a public company?
When a company launches an IPO (or initial public offering) this means they become a public company whose shares are traded on the stock exchange, so Snowflake has been a public company since 2020.