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Taiko Aichi Capital Comments on Snowflake as It Launches Largest-Ever U.S. Software IPO
[September 22, 2020]

Taiko Aichi Capital Comments on Snowflake as It Launches Largest-Ever U.S. Software IPO


TOKYO, Sept. 22, 2020 /PRNewswire/ -- Taiko Aichi Capital, a private wealth management company headquartered in Tokyo, Japan, has commented on Snowflake as it launches the largest initial public offering ever recorded for a U.S. software company, in the latest example of Wall Street's voracious appetite for cloud computing businesses.

Anthony Green, Taiko Aichi Capital's Head of Capital Markets, commented: "Snowflake sold 28 million shares valued at $120 apiece, raising around $3.4 billion in proceeds for the company. This gives the company a market valuation of over $33 billion.

"The final share price surpassed Snowflake's targeted range of $100 to $110, which itself was increased by more than a quarter earlier this week," he added. 

The cloud software company's market value is more than two-and-a-half times that of the $12.4 billion valuation it achieved in its last fundraising round in February.

Snowflake's offering is the biggest of the year and the largest in the U.S. since Uber's $8.1 billion flotation in May last year, according to analysts at Taiko Aichi Capital. VMware, the cloud computing company, majority-owned by Dell, had previously completed the largest software IPO when it went public in 2007.



The company has drawn investors through its fast-growing base of customers who use its data warehousing product, which enables users to analyse data across multiple remote storage providers, such as Amazon Web Services (AWS).

Snowflake's revenue increased by 121 percent in the second quarter from the same period last year, and it boasts high "net retention" numbers, demonstrating customer loyalty.


Thomas Henderson, Taiko Aichi Capital's Director of EMEA Wealth, commented: "Snowflake's IPO received a significant boost last week when Warren Buffett's Berkshire Hathaway and Salesforce both agreed to purchase $250 million in stock alongside the flotation. Berkshire also purchased a further $320 million from the company's previous chief executive, Bob Muglia."

The company's listing is further evidence of the increased demand for tech firms benefiting from the shift towards remote working. The BVP Nasdaq Emerging Cloud Index, which monitors cloud software companies, has gained almost 59 percent this year, more than doubling the returns of the broader tech-heavy Nasdaq Index.

Goldman Sachs and Morgan Stanley both served as lead underwriters on the Snowflake offering.

About Taiko Aichi Capital

Established in 2007, Taiko Aichi Capital ??????? is an independent, boutique, private wealth management and advisory company with headquarters located in Tokyo, Japan. 

Contact:
Shinsato Masao, Group Head of Research
Switchboard +81 3 4572 0250 | Email shinsato.masao@tac-partners.com
16F Otemachi Park Building, 1-1-1 Otemachi, Chiyoda-ku, Tokyo, Japan.

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SOURCE Taiko Aichi Capital


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