Snowflake IPO values firm at over $70 billion

Snowflake soared in a euphoric stock market debut that transformed the eight-year-old software company into a business valued at more than $70 billion.

Snowflake’s $3.36 billion initial public offering is a record for a software company and the biggest in the United States this year. Its share price soared as much as 166 percent Wednesday, minting fortunes inside the company and in Silicon Valley.

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

Coming today

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.