Snowflake (SNOW) & Unity; The biggest IPOs of the year begins this month

Among the software tech companies that are going public soon, Unity & Snowflake are anticipated to be the biggest IPOs of the year. Right now, however, let’s talk about some bigger companies, namely all the unicorns that are going public this week.

We can set aside Corsair Gaming, Palantir and Asana, as they debut next week. This morning let’s get settled on what’s ahead for JFrog, Snowflake, Sumo Logic and Unity.

We explored the most recent pricing ranges for Snowflake and JFrog yesterday, helping set the stage. With both companies setting new, richer price targets for their debuts, the technology market looks hot. That’s good news for Sumo Logic and Unity, which should also begin trading this week.

After trading today we expect to see JFrog  and Snowflake  price their IPOs. As a quick reminder, this is what the two companies are expecting, starting with developer-focused service provider JFrog:

  • Price target: $39 to $41 per share.
  • Implied valuation range: $3.46 billion to $3.64 billion, discounting underwriters’ shares.
  • Final private valuation: $1 billion

Snowflake (SNOW) now publicly traded

Snowflake priced its initial public offering Tuesday night at $120 a share — well above the expected range of $100 to $110. That price range was revised upwards from the original expectation of $75 to $85 a share earlier this month. It will trade on the NYSE under the ticker symbol of “SNOW.”The company is selling 28 million shares and will raise nearly $3.4 billion from the IPO. At its $120 share price, Snowflake will be valued at $33.3 billion.

To put that into context, that makes Snowflake, which was just founded in 2012.

Snowflake is one of several buzzy “unicorn” startups expected to go public before the end of 2020, a list that also includes Airbnb, Palantir and DoorDash. Snowflake helps blue chip companies analyze and share data in the cloud.The company said in its most recent regulatory filing with the Securities and Exchange Commission that it now has more than 3,100 customers — double the total from a year ago. That includes 146 of the Fortune 500 firms. Snowflake CEO Frank Slootman and other company executives are among the top individual investors in the company.

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Tim Rolle
Investor of 6 years and Managing Editor of Money Midnight, a news outlet focused on highly profitable investment ideas and bold underground research.
Articles: 113

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