Klaviyo, a Boston-based marketing software firm, priced its initial public offering at $30 a share late Tuesday night.
On a fully diluted basis, Klaviyo will have 306 million shares outstanding, giving the company a market value of about $9.2 billion at the IPO price.
On Monday, Klaviyo had increased the expected price range for the offer to between $27 to $29 a share, from a previous estimate of $25 to $27. The company will list on the New York Stock Exchange under the ticker symbol KVYO, with trading to commence Wednesday.
This is the third in a flurry of tech IPOs after many months when the tech new issue window was basically closed.
Arm Holdings
(ticker: ARM), the UK-based chip design house, came public last week at $51 a share and quickly rallied 25%, though it has since given up most of the initial gains.
Instacart
parent Maplebear (CART), went public at $30 a share, opened for trading on Tuesday at $42, then closed its first day as a public company at $33.70.
Klaviyo, founded in 2012, helps companies with digital marketing campaigns that use email, text messages, and other notifications. The company competes with companies like
Adobe,
Salesforce,
and
Intuit’s
MailChimp unit.
The offering is for 19.2 million shares, including 11.5 million for selling shareholders. The total includes five million shares from the venture firm Summit Partners, which will still hold a 21% voting interest after the offering.
Klaviyo has two classes of stock—A shares and B shares—with the B shares getting 10 votes each, versus one vote for each A share. Insiders control the Class B shares, which together account for more than 99% of the voting interest in the stock.
Shopify
will hold an 11.5% voting interest in the company after the offering, with its stake worth about $1 billion at the IPO price, a little more than 1% of the e-commerce software firm’s market value. CEO and co-founder Andrew Bialecki will hold 39% voting control after the offering.
In a recent research note, Roth MKM analyst Rohit Mulkarni noted that more than 80% of the company’s annualized revenue comes from Shopify customers.
For the six months ended June 30, Klaviyo posted revenue of $246.6 million, up 64% from the same period a year earlier. Full year 2022 revenue was $344.7 million, up 67% from 2021. The company turned profitable this year, with net income for the first six months of $15.2 million. Trailing 12 months revenue through the latest quarter was $585.1 million, up 56.5%.
The company noted in its prospectus that BlackRock and AllianceBernstein have agreed to buy up to $100 million of stock at the IPO price.
Goldman Sachs,
Morgan Stanley, and Citigroup are leading the underwriting group for the deal.
Write to Eric J. Savitz at [email protected]
Read the full article here