By
Tolu Ajiboye
February 9th, 2024
Klaviyo has followed in the footsteps of Instacart and has raised its funding target for the upcoming listing, along with share price range.
Marketing and data automation company Klaviyo Inc has reportedly boosted its initial public offering (IPO) target to $557 million. This boost now puts Klaviyo’s market valuation at about $8.7 billion.
Last week, Coinspeaker reported that Klaviyo had a target of $518 million from the upcoming IPO and planned to sell 11.5 million shares for between $25 and $27. A filing with the United States Securities and Exchange Commission (SEC) revealed that existing shareholders will also sell 7.7 million shares. However, in addition to raising its target, Klaviyo reviewed the share range to between $27 and $29. The company is expected to submit a new SEC filing today. In 2021, Klaviyo conducted a Series D funding round led by Sands Capital, raising $320 million on a $9.15 billion valuation.
So far, asset management giant BlackRock Inc (NYSE: BLK), as well as management and research services company AllianceBernstein LP, have noted their interest in buying up to $100 million in Klaviyo shares.
Klaviyo is expected to go public on the New York Stock Exchange under the ‘KVYO’ ticker. The company’s investors include e-commerce giant Shopify (NYSE: SHOP), venture firm Accomplice, and growth equity company Summit Partners. The IPO will have Morgan Stanley, Citigroup, and Goldman Sachs as the lead underwriters.
Klaviyo Target Boost Follows Instacart Increase and Impressive Arm Debut
Klaviyo is a marketing and data automation company part of the Shopify platform. As of June 30, 2023, Klaviyo had over 130,000 customers and recorded $164.6 million in revenue for the quarter ended on that day. This was a 51% increase from the first half of 2022. Also, Klaviyo had a net income of $15 million and a total revenue of $321 million for 2023’s first half.
The Klaviyo increase in target follows a similar boost by online grocery delivery service Instacart, which also raised its IPO price range. The company now hopes to sell 22 million shares at between $28 and $30 each, up from $26 to $28. The top of the range points to a potential $660 million, higher than the former $616 million target. Like Instacard, Klaviyo’s target increase may indicate rising confidence in the company and the potential success of its potential IPO. At the moment, Instacart already has cornerstone investors willing to buy up to $400 million worth of the company’s IPO shares. According to reports, American beverage and snack giant PepsiCo Inc (NASDAQ: PEP) has agreed to buy $175 million worth of Instacart shares.
The American financial market is witnessing a lot of attention in the IPO department from Klaviyo, Instacart, and Arm. SoftBank-owned chip designer Arm Holdings had a successful trading debut last week, selling 95.5 million American Depositary Shares (ADS) beginning at $56.1. The company closed the trading day at $63.59, spiking 25%. Trading on the Nasdaq under the “ARM” ticker, ARM is currently at $60.65 in premarket trading. So far, Arm Holdings Plc has already taken the crown as the biggest IPO for the year.