Klayviyo, a partner of e-commerce firm Shopify, has upped the pricing of its pending IPO following Instacart’s lead after chip designer ARM Holding’s successful float in a market that is heating up.
The company, which provides a marketing automation platform used primarily for email and SMS marketing, said in a filing with the US Securities and Exchange Commission that 19.2 million shares are being offered at between $27 and $29 each. If successful, that would give the company a fully diluted valuation of as much as $9 billion.
The company previously estimated an IPO range of $25 to $27 per share.
After ARM’s successful stock market debut, which saw its shares jump 25%, Instacart raised its IPO range by about 7% to $28 to $30 a share to target a fully diluted valuation of up to $10 billion.
ARM has been hailed as a potential breakthrough, or at least an encouraging movement in a market that has effectively been closed for the best part of a year, amid market uncertainty due to higher inflation and interest rates.
Klayviyo said it is offering 11.5 million ‘A’ shares in the IPO, while selling shareholders including one of its directors, are offering a further 7.69 million shares. It will not receive any proceeds from the sale of shares by the selling shareholders.
The ‘A’ shares have a tenth of the voting power of the company’s ‘B’ shares but are identical in other respects.
In the filing, the company noted that about 77.5% of its 2022 annual recurring revenue was derived from customers who also use Shopify’s platform. Shopify
Its shares are expected to begin trading on the New York Stock Exchange under the ticker symbol “KVYO”.
Contact the author at stephen.gunnion@proactiveinvestors.com