Quiver Quantitative - Marketing automation firm Klaviyo Inc has reportedly priced its Initial Public Offering (IPO) shares at a noteworthy $30 each, surpassing its initially marketed range. This decision is anticipated to raise around $576 million for Klaviyo and its existing investors, catapulting the Boston-based company to a substantial valuation of approximately $9.2 billion. The IPO details surfaced amidst the wave of successful listings, including the recent buoyant debut of online grocery platform Instacart (CART) and semiconductor designer Arm (ARM), a SoftBank subsidiary. Industry giants BlackRock (NYSE:BLK) and AllianceBernstein (AB) have manifested a keen interest, planning to acquire an aggregate worth of $100 million of IPO shares, as mentioned in Klaviyo's recent SEC filings.
Reflecting on its financial trajectory, Klaviyo disclosed a net income of $15 million generated from a revenue of $321 million during the first half of the current year, showing a significant recovery compared to last year's loss of $25 million on a revenue of $208 million. The company has caught the attention of prominent investors such as Summit Partners, e-commerce titan Shopify (TSX:SHOP) and venture firm Accomplice. The IPO is set to witness Summit offloading 4.9 million shares, while Accomplice plans to part with nearly 1.8 million shares.
Spearheading the company's robust management, co-founder and CEO Andrew Bialecki will retain his position as the majority shareholder, commanding 39% of the voting power, followed by Summit Partners holding a 21% stake. With roots dating back to 2012, Klaviyo, conceived by software engineers Andrew Bialecki and Ed Hallen, specializes in furnishing e-commerce brands with data storage and analysis solutions. This facilitates the customization of marketing emails and messages to prospective clients, currently serving over 130,000 businesses globally.
In this significant leap forward, Klaviyo has entrusted the responsibility of leading the offering to financial behemoths Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), and Citigroup (NYSE:C). The shares, denoted by the ticker symbol “KVYO”, (KYVO) are slated to commence trading on the New York Stock Exchange this Wednesday. This IPO marks a revitalization in the U.S. IPO landscape, which witnessed a drought throughout the better part of this year and 2022. Notably, the sources highlighting the pricing details requested anonymity due to the confidential nature of the discussions.
This article was originally published on Quiver Quantitative