Market history · New issues ·
Snowflake doubles in the biggest software IPO ever
Snowflake listed on the New York Stock Exchange on 16 September 2020. It sold shares at $120, raising about $3.4 billion, and its shares opened at $245, more than doubling in the first day and giving it a value of about $70 billion, CNN and CNBC reported. It was the largest software IPO on record at the time.
The pricing was set well above the range Snowflake had first marketed, and demand from investors was heavy, in a year when low interest rates and strong growth in technology shares had lifted valuations. The shares later fell well below their first-day levels.
The takeaway
A first-day pop is a measure of demand at the offer price. It does not set the value a company will have in later years.
Sources
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.