Snowflake initial public offering (IPO) is upcoming. This is another trending IPO that has had its stock price reviewed upwards due to its customer growth rate and potential demand for cloud data. As of July 31, 2020, the company had 3,117 customers, increasing by 1570 from July 31, 2019. Snowflake is a cloud-based data warehouse platform that filed for IPO on August 24, 2020 after posting a 2020 first half (as of July 31, 2020) revenue of $171.3 million and net loss of $348.5 million. In the week of 14/09/2020, Snowflake is to be listed on New York Stock Exchange, currently with a price range of between $100 - $110 and offering of 28 million shares to raise $3.08 billion. This represents an increase of $25 from an initial price range of $75 - $85 (33% & 29% hikes). Like other large IPOs of 2020, will Snowflake experience a temporary hype or speculators’ ride in its first week of IPO or will it sustain a momentum price above the IPO rate? Especially, in consideration of the covid-19 economic impact.
Let’s take a look at 3 recent IPOs of 2020 during the covid-19 period and their price pattern over the first 7 public trading days:
NB: Prices are in USD and sourced from Yahoo finance
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