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Snowflake raises largest-ever software IPO amid huge cloud demand

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Data management firm Snowflake has sealed an Initial Public Offering (IPO) worth approximately $3.36 billion - the world's largest-ever software IPO.

The data-warehousing company issued its shares at $120 a share which, with 28 million shares in circulation. The purchase prices hands the company a market capitalization of more than $33 billion.

The majority of the shares will be swallowed up by Berkshire Hathaway and Salesforce, which agreed to purchase $250 million in shares at the IPO price.

Underwriters, which include Goldman Sachs and Morgan Stanley, will also have access to an extra 4.2 million shares, which could push the total value raised north of $4.4 billion.

Earlier this year, Snowflake held a private funding round which valued the company at $12.4 billion. A month ago, when it filed for the IPO, it valued its shares at $75-$85 per share, but soon after pushed the price up to $100-$110, and then $120.

According to Renaissance Capital, this could be the largest software IPO on record, based on the elevated pricing range.

The stock is set to begin trading on the New York Stock Exchange today under the symbol “SNOW”.