Klaviyo prepares for US market debut after pricing IPO above range

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Traders work on the floor of the NYSE in New York

Trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 30, 2023. REUTERS/Brendan McDermid Acquire Licensing Rights

Sept 20 (Reuters) – Marketing automation company Klaviyo (KVYO.N) was set to list its shares on the New York Stock Exchange on Wednesday, in a third big test for the market for new issues following smooth debuts of Arm Holdings and Instacart (CART.O).

The Boston-based company’s initial public offering was priced above range on Tuesday, raising $576 million in proceeds, part of which will go to existing investors who cashed out some of their holdings.

The offering gave Klaviyo a valuation of $9.2 billion. BlackRock (BLK.N) and AllianceBernstein have agreed to buy up to $100 million worth of shares each, accounting for a big chunk of the total IPO proceeds.

A successful debut of Klaviyo would underscore a revival in the IPO market, which has been on ice for nearly 18 months after the end of an easy-money regime prompted investors to question the valuations of high-flying startups.

Both Arm and Instacart have seen strong debuts in recent days but have given back most of their gains following the first-day pops. However, their shares are still above their respective IPO prices.

Founded in 2012 by software engineers Andrew Bialecki and Ed Hallen, Klaviyo helps store and analyze data for e-commerce brands, enabling them to send out personalized marketing emails and messages to potential customers.

Reporting by Niket Nishant in Bengaluru; Editing by Anil D’Silva

Our Standards: The Thomson Reuters Trust Principles.

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