“Does this put pressure on us? Of course, yes, ”Snowflake CEO Frank Slootman commented on the company’s rising share price to The Wall Street Journal.
Technology company Snowflake was listed on the New York Stock Exchange on Wednesday and its share price more than doubled immediately.
The IPO was the largest of the year to date and the largest ever among software vendors, commented US investment bank Renaissance Capital To The New York Times.
The share price was estimated at $ 120 before listing. When the official trading day ended, the price was $ 254, according to US media The Wall Street Journal.
The cloud service company is among the growth companies listed this year after the global Technology Industry has been successful despite the coronavirus pandemic. The company’s product is a cloud-based data storage and analysis service.
Snowflakes the valuation is now about $ 70.4 billion.
“Does this put pressure on us? Of course yes, ”CEO of Snowflake Frank Slootman commented on the company’s rising stock price to The Wall Street Journal.
“This is a sign of trust. But clearly, as a management team and employees, we have to work hard to achieve that. ”
The venture capitalists behind Snowflake estimated the company at $ 12.4 billion just seven months ago.
Snoflaken success on the first trading day increases the hype around technology companies.
The hunger for growth in a low-interest environment and the growing popularity of technology companies ’products in the coronavirus pandemic have accelerated listings.
HS said technology company Palantir’s IPO plan at the end of August. In addition, Airbnb, Asana, Unity and Alibaba’s subsidiary Ant Group, among others, have announced their intentions.
Like many growth companies in the current environment, Snowflake is not making a profit, but the company has grown rapidly. For the six-month period ended July 31, the company made a loss of $ 171.3 million and had revenue of $ 242 million. Net sales doubled from last year.