Shares of the cloud-data software maker opened at $245 — more than double its IPO price — in New York trading. That 104 percent gain at the opening bell was the third-highest such increase for an IPO of $1 billion or more on a U.S. exchange and the biggest since Florida-based equipment rental company Herc Holdings went public in 2006.
Snowflake sold 28 million shares at $120 apiece Tuesday. They were earlier marketed for $100 to $110 each after the range was boosted from $75 to $85.
The shares, which reached as high as $319, closed up 112 percent to $253.93 in New York trading, giving it a market value approaching six times the $12.4 billion it received in a private funding round in February.
That makes Snowflake, previously a little-known firm based in San Mateo, Calif., more valuable than Uber Technologies, Dell Technologies and General Motors, according to data compiled by Bloomberg News.
— Bloomberg News
Raytheon to cut jobs, review factory space
Raytheon Technologies aims to cut 15,000 jobs — much deeper than previously planned — and review its factory footprint as chief executive Greg Hayes prepares to capitalize when commercial air travel recovers from the coronavirus pandemic.
The plans could result in more than the $2 billion in cost cuts already targeted by the company, which is also implementing additional measures to preserve $4 billion in cash. In July, the maker of jet engines and other aircraft parts projected it would cut about 8,500 jobs.
“Given the slope of the recovery, I think the folks have taken a more aggressive look at head count, and we’re really pushing through trying to exceed that $2 billion,” Hayes said Wednesday at a Morgan Stanley conference. “We’re going to look for additional savings this year.”
The deeper reduction in payroll — most of which is expected to come this year — highlights the continued pain that the drop in global airline traffic has inflicted on suppliers as carriers ground jets, retire planes early and delay nonessential fleet maintenance.
— Bloomberg News
Also in Business
Shares of U.S.-Israeli technology provider JFrog closed up 47 percent to $64.79 after jumping as much as 75 percent in its Nasdaq debut, after the company raised $509 million in its initial public offering. Founded in 2008, JFrog develops tools for automating the process of building and running apps and counts Amazon, Alphabet-owned Google and Netflix among its customers.
Investigators are looking at a power line owned by Edison International's Southern California Edison as part of their probe into a fire burning in the mountains near Los Angeles. The U.S. Forest Service has asked Edison to remove a piece of electrical line near the site where the Bobcat Fire started, the utility said in a report filed with state regulators. The Forest Service hasn't alleged that Edison's equipment started the fire in the San Gabriel mountains, according to the report.
— From news services
8:30 a.m.: Labor Department releases weekly report on unemployment benefits.
8:30 a.m.: Commerce Department releases housing starts for August.
10 a.m.: Mortagage company Freddie Mac releases weekly mortgage rates.