Klaviyo Inc (NASDAQ:KVYO) sealed a premium-priced market debut on Wednesday, building on its ‘above the range’ IPO pricing earlier in the day.
The marketing automation firm saw its newly listed stock advance 9.2% after trading began on Nasdaq, closing its first trading day at $32.76.
Earlier in the day, in the early hours, the company’s IPO was priced at $30 apiece, above its previously announced range of $27 to $29 per share. The float valued the business at around $9.2 billion.
It followed the bullish floats of ARM Holdings (last week) and Instacart (NASDAQ:CART) (on Tuesday) which both soared to big premiums on their respective debuts – though both have also pulled back somewhat since.
Klaviyo helps store and analyze data for e-commerce brands that enables them to send out personalized marketing emails and messages to potential customers.
The company’s clients include over 130,000 businesses in more than 80 countries.
e-commerce firm Shopify was among the notable companies to cornerstone the marketing group, with an 11% stake in the company, after previously investing $100 million in the digital marketing company.
The come-to-market stock sale was backed by BlackRock and AllianceBernstein which together committed to $200 million of the offering.
A total of 19.2 million shares were sold in the IPO, of which some 11.5 million was new equity sold by the company to raise $345 million of proceeds whilst the remainder of offering stock were ‘cash-out’ sales by existing shareholders.
Whilst following the two preceding new floats, Wednesday’s IPO was given the distinction of being ‘the first notable IPO for an American venture-backed software company since late 2021’.