Snowflake Inc (SNOW) is a publicly traded company on NYSE exchange.

Snowflake Inc (SNOW) is a publicly traded company on NYSE exchange. Answer the following questions regarding SNOW:

a)When did the company go public and who were the lead underwriters? (1 marks)

b)What was the IPO offering price per share? (1 marks)

c)What was the opening price and what was the closing price on the opening day? (1 marks)

d)SNOW was able to sell 36.4 million shares at the IPO price. Underwriting fees amounted to $106 million. Calculate the percentage spread charged by the underwriters. (2 marks)

e)How much money was left at the table ($ amount of underpricing)? (2 marks)

f)What is the 52 week and high and the 52 week low price for this stock? (1 marks)

g)What is the Earning per share (EPS) for SNOW? Based on the value of EPS, why would an individual want to invest in SNOW? (2 marks)

Sample Solution

Snowflake Inc. (SNOW) is a publicly traded company on NYSE exchange

Few companies have gone from almost anonymity among retail investors to huge buzz like Snowflake (NYSE:SNOW) has over the past couple of months. With the incredible run cloud computing stocks have had, interest in Snowflake exploded as investors chased the newest, shiniest investment opportunity in the cloud. As a result, Snowflake shares rocketed higher when trading commenced at 12:38 p.m. EDT on September 16, 2020. Even after Snowflake raised its IPO price twice in the days leading up to going to public, moving it up from $75 per share to a final price of $120, its stock still shot up to $245 per share upon hitting the market. That was more than double the per-share price Snowflake got from investors in the IPO. Goldman Sachs, Morgan Stanley, J.P. Morgan, Allen & Co and Citigroup were the lead underwriters for the offering.

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