Shopify-Backed Klaviyo Seen Opening 13% or More Above IPO Price

Marketing and data automation provider Klaviyo Inc. is set to start trading Wednesday after pricing its initial public offering above a marketed range to raise $576 million in the third major US listing in a week.

(Bloomberg) — Marketing and data automation provider Klaviyo Inc. is set to start trading Wednesday after pricing its initial public offering above a marketed range to raise $576 million in the third major US listing in a week.

Shares were indicated to open between $34 and $36, at least 13% above the IPO price set on Tuesday. 

Klaviyo and a group of its current investors sold 19.2 million shares for $30 each after earlier marketing them for $27 to $29 each, according to a statement confirming an earlier report by Bloomberg News. At the IPO price, the Boston-based company has a fully diluted value of about $9 billion.

While the company is less well known than the recently public Arm Holdings Plc. and Instacart, the email marketer, which sells to other businesses, is a more “bread and butter” technology IPO. Other private companies serving enterprises will be watching Klaviyo’s stock performance closely to see if they should also test the public waters. 

Like Arm and Instacart, Klaviyo signed up cornerstone investors to help support the listing. BlackRock Inc. and AllianceBernstein LP expressed interest in buying as much as $100 million of the IPO shares in aggregate, according to Klaviyo’s filings with the US Securities and Exchange Commission.

The company’s investors include growth equity firm Summit Partners, e-commerce platform Shopify Inc. and venture firms Accomplice and Accel. Summit is selling 4.9 million shares in the IPO, while Accomplice is selling almost 1.8 million.

Klaviyo had net income of about $15 million on revenue of $321 million for the first six months of the year, compared with a loss of $25 million on revenue of $208 million for the same period last year, according to the filing.

Klaviyo’s largest shareholder will remain co-founder and Chief Executive Officer Andrew Bialecki, who will control 39% of the voting power, followed by Summit with 21%, according to the filings. Bialecki, 37, studied physics, astronomy and astrophysics at Harvard before founding the company in 2012. 

The offering is being led by Goldman Sachs Group Inc., Morgan Stanley and Citigroup Inc. Klaviyo’s shares will trade on the New York Stock Exchange under the symbol KVYO.

–With assistance from Amy Or and Bailey Lipschultz.

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