Marketing and data automation provider, Klaviyo has announced revisions to its plans for its third major US initial public offering (IPO) this week, increasing its target to $557 million. According to a filing on Monday, the Boston-based company has upped its price range for the IPO to $27 to $29 a share, a notable bump from the original range of $25 to $27 each. The company, in conjunction with its existing shareholders, is set to offer 19.2 million shares, signaling a potential valuation of approximately $8.7 billion.
This development in the IPO target of Klaviyo comes in close succession to Maplebear, the parent company of the online grocery delivery service Instacart, which also raised its price range in anticipation of its imminent IPO. Instacart is aiming to secure as much as $660 million on Monday, with a valuation exceeding $9 billion, and is scheduled to commence trading on Tuesday.
Klaviyo and Instacart’s IPO endeavors are taking place in the wake of the SoftBank Group Corp.-owned semiconductor designer Arm Holdings Plc, which initiated the year’s most substantial IPO, subsequently witnessing a 25% surge in shares on Thursday.
Among Klaviyo’s investors, BlackRock Inc. and AllianceBernstein LP have expressed interest in procuring $100 million worth of the IPO shares, as per SEC filings. Other notable investors include Summit Partners, e-commerce giant Shopify Inc., and venture firm Accomplice.
In terms of financial performance, Klaviyo has demonstrated robust net income, reporting approximately $15 million on revenue of $321 million for the initial six months of this year. This stands in stark contrast to a loss of $25 million on revenue of $208 million for the corresponding period in 2022.
The IPO offering is being spearheaded by a consortium comprising Goldman Sachs Group Inc., Morgan Stanley, and Citigroup Inc. Klaviyo shares will be available for trading under the symbol KVYO.
This week has witnessed a significant surge in initial public offerings, with three major companies vying for attention and investments in the US market. With substantial interest from cornerstone investors already registered, Klaviyo Inc.’s revised target aims to fortify its prospects for a successful debut in the public market.
Source: Bloomberg
