Snowflake raised the largest initial public offering ever for a US software company, in the latest sign of Wall Street’s huge demand for cloud computing service businesses. 

Investors agreed to purchase 28m shares of Snowflake stock valued at $120 apiece, said people briefed on the offering, raising about $3.4bn in proceeds for the cloud software company. That price would give the company a market capitalisation of more than $33bn, based on the number of shares outstanding.

Snowflake’s share price exceeded the company’s targeted range of $100 to $110, which itself was increased by more than a quarter earlier this week. The company’s market value is more than two-and-a-half times the $12.4bn valuation achieved in its most recent fundraising round in February. It declined to comment on the pricing.