Snowflake Attracts Berkshire, Salesforce to Technology IPO

(Bloomberg) — Snowflake Inc. plans to raise as much as $2.38 billion in one of this year’s biggest technology initial public offerings that has already attracted the likes of Warren Buffett.

The San Mateo, California-based company said in a filing Tuesday that it will market 28 million shares for $75 to $85 each. At the top of that range, Snowflake would be valued at $23.7 billion based on the outstanding shares listed in the filing.

That would give the cloud-data company a valuation of almost twice that in its last private funding round of $12.4 billion.

Timed with the IPO, Berkshire Hathaway Inc. and Salesforce Ventures, an arm of Inc., will each buy $250 million the company’s Class A common stock in a private placement. Berkshire has also agreed to buy 4 million shares in a secondary transaction, according to the filing.

Snowflake raised $479 million in February at a valuation of $12.4 billion from backers including Dragoneer Investment Group and Salesforce Ventures. Other investors include Iconiq Capital, Sequoia, Altimeter Capital, Madrona Venture Group, Redpoint Ventures and Sutter Hill Ventures.

Tech Rush

Other technology companies are also gearing up for their listings once the U.S. holiday weekend is over. JFrog Inc., a technology company that makes tools for software developers,set terms on Tuesday for its up to $428 million IPO, according to a filing.

Cloud software platform Sumo Logic Inc. also filed Tuesday to sell 14.7 million shares at $17 to $21 apiece, or $310.8 million, its listing document shows.

Meanwhile, the two direct listing candidates, Palantir Technologies Inc. and Asana Inc. are hosting investor days Wednesday and Thursday respectively, the companies said on their websites.

Snowflake, which announced an enhanced strategic partnership with Salesforce in June, said it had more than 3,000 customers as of July 31, including 146 of the Fortune 500, according to its filing.

The company said it lost $171 million on revenue of $242 million for the six months ended July 31, compared with a loss of $177 million on revenue of $104 million for the same period last year.

The Snowflake offering is being led by Goldman Sachs Group Inc. and Morgan Stanley. Snowflake plans to list its shares on the New York Stock Exchange under the symbol SNOW.

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