JFrog and Snowflake’s aggressive IPO pricing point to strong demand for cloud shares – ProWellTech
After raising their IPO price ranges, both JFrog and Snowflake are priced higher than their updated ranges last night. At their latest IPO prices, the two debuts are aggressively priced, showing continued optimism among public investors that cloud stocks are an attractive bet, even if their growth is funded by a history of heavy losses, as is the case with Snowflake. .
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The JFrog The IPO price is remarkable because it shows how much public investors are willing to pay for 50% growth and recent profits of a SaaS company. And Snowflake’s price is noteworthy for showing the value of huge growth and improving the economy.
This morning we will explore the final values of the two companies, compare these results with their initial IPO price ranges, and calculate their current revenue multiples based on the last quarter’s annual execution rates. It will be funny.
Later today we will have updates on how they open up to trade. For now, let’s get into the math and valuation nuance that you and I need to figure out exactly where the public market is today as so many unicorns are on their way to an IPO or are just out of the pool with just one clog dipped in to check the temperature. .
Price this, animal dirt
JFrog priced its IPO at $ 44 per share, above its increased range from $ 39 to $ 41 per share and comically higher than its first $ 33 to $ 37 per share price range. In fact, the company’s final IPO price was 33.3% higher than the low of its first proposed price range.
While I doubt anyone expected the company to go for as low as $ 33 per share, JFrog’s price run shows strong demand even before it started to fluctuate.