Klaviyo, a Boston-based marketing software company, has priced its IPO $30 per share late Tuesday evening.
On a fully diluted basis, Klaviyo will have 306 million shares outstanding, giving the company a market value of approximately $9.2 billion at the IPO price.
On Monday, Klaviyo had raised the expected price range for the offering to $27 to $29 per share from a previous estimate of $25 to $27. The company is listed on the New York Stock Exchange under the ticker symbol KVYO; trading begins on Wednesday.
This is the third in a series of technology IPOs after many months in which the window for new technology issues was virtually closed. Arm Holdings (ticker: ARM), the U.K.-based chip design house, went public last week at $51 a share and quickly gained 25%, although it has since given back most of its initial gains. Instacart parent Maplebear (CART) went public at $30 a share, opening trading Tuesday at $42 and closing its first day as a public company at $33.70.
Founded in 2012, Klaviyo helps companies with digital marketing campaigns using email, text messages and other notifications. The company competes with the likes of Adobe, Salesforce and Intuit’s MailChimp unit.
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The offer includes 19.2 million shares, including 11.5 million for selling shareholders. The total includes five million shares of venture company Summit Partners, which will continue to hold 21% of the voting rights after the offering.
Klaviyo has two share classes – A shares and B shares – with B shares receiving 10 votes each, versus one vote for each A share. Insiders control the Class B shares, which together represent more than 99% of the voting rights in the stock. Shopify will hold an 11.5% voting stake in the company following the offering, with its stake worth about $1 billion at the IPO price, just over 1% of the e-commerce software company’s market value. CEO and co-founder Andrew Bialecki will hold 39% voting control following the offering.
In a recent research note, Roth MKM analyst Rohit Mulkarni noted that more than 80% of the company’s annual revenue comes from Shopify customers.
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For the six months ended June 30, Klaviyo reported revenue of $246.6 million, up 64% from the same period last year. Full-year 2022 revenue was $344.7 million, up 67% from 2021. The company turned profitable this year, posting net income of $15.2 million in the first six months. Twelve-month revenue through the most recent quarter was $585.1 million, up 56.5%.
The company noted in its prospectus that BlackRock and AllianceBernstein have agreed to purchase up to $100 million worth of shares 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]