investors together bought more than $100 million of stock in the software company’s recent initial public offering.
Altimeter Capital and Iconiq Capital are large holders in Snowflake stock (ticker: SNOW), as their affiliated entities had invested in the company before the IPO earlier this month.
Altimeter’s pre-IPO preferred Snowflake shares were converted to 36,286,307 supervoting Class B shares. Each class B share carries 10 votes each; class A common stock, the newly public shares, are entitled to one vote each. Class B shares are convertible at any time by the holder into Class A shares. Through those shares, Altimeter holds 14.9% voting power in Snowflake
Iconiq’s preferred Snowflake shares were converted to 33,752,048 Class B shares, representing 13.8% voting power.
Altimeter disclosed in a Securities and Exchange Commission filing that its affiliated entities bought 420,000 Class A Snowflake shares at the $120 IPO price for a total of $50.4 million. Iconiq entities also bought 420,000 Class A shares for $50.4 million.
Altimeter didn’t respond to a request for comment on its purchase of Class A Snowflake shares. Iconiq declined to comment.
Snowflake stock has nearly doubled through Friday’s close from the $120 IPO price. We’ve noted that at least one observer thinks Snowflake’s stock is “at risk of a violent selloff.”
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.