Snowflake aims for $20bn IPO

Database start-up Snowflake is eyeing a valuation of as high as $20bn in its initial public offering.

The listing would be one of 2020’s largest tech listings as investors demand fast-growing tech groups, many of which have seen their popularity boosted during the coronavirus pandemic.

According to the Financial Times, which cited a person briefed on the matter, the company had hired Goldman Sachs to advise on the IPO and had already received interest from investors looking to buy shares.

Bankers have told Snowflake it could fetch a valuation of between $15.0bn and $20.0bn, with the listing possibly coming as soon as this summer.

Snowflake, which was founded in 2012 and quickly became one of America's most valuable start-ups, has reportedly already submitted a confidential IPO filing with the US Securities and Exchange Commission.

Investors led by Dragoneer Investment Group and Salesforce recently valued Snowflake at $12.4bn in a nearly $480m round of funding in February, tripling its previous valuation.

Frank Slootman, chief executive, said in an April interview that the company could push plans for an IPO into 2021 following the spread of the coronavirus pandemic and because the November US presidential elections may make it difficult to carry out the listing as autumn progresses.