Klaviyo’s shares surged nearly 23% during its debut on the New York Stock Exchange (NYSE), resulting in a valuation of $11.3 billion. The stock opened at $36.75, exceeding the initial public offering (IPO) price of $30. The company, based in Boston, raised $576 million through its IPO of 19.2 million shares, which were priced above the expected range. Some of the proceeds will be distributed to existing investors who sold off portions of their holdings. The IPO gave Klaviyo a valuation of $9.2 billion. BlackRock and AllianceBernstein have committed to purchasing up to $100 million worth of shares each, accounting for a significant portion of the total IPO proceeds.
Andrew Bialecki, co-founder and CEO of Klaviyo, stated that the trend of consumer businesses establishing stronger digital relationships with customers is enduring and in its early stages. He believes that going public demonstrates a long-term commitment.
The successful debut of Klaviyo highlights a resurgence in the IPO market, which had been stagnant for about 18 months due to concerns about the valuations of high-growth startups following the end of an era of easy money. While Arm and Instacart experienced strong initial performances, they have since relinquished most of their gains. Nevertheless, their share prices remain above their respective IPO prices.
Founded in 2012 by software engineers Andrew Bialecki and Ed Hallen, Klaviyo assists e-commerce brands in storing and analyzing data to facilitate personalized marketing emails and messages to potential customers.
Reporting by Jaiveer Singh Shekhawat and Niket Nishant in Bengaluru; Editing by Anil D’Silva, Vinay Dwivedi, and Shounak Dasgupta.
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