Klaviyo Inc (NASDAQ:KVYO) shares retreated towards Wednesday’s IPO price this morning as the sugar rush of its Nasdaq debut faded.
In early deals, Klaviyo was down 36 cents or 1.1% trading at $32.40.
It comes after the marketing automation firm sealed a premium-priced market debut, rising 9% on top of its ‘above the range’ IPO pricing that valued the business at $9.2 billion.
Klaviyo’s offering was previously pitched at $27 to $29 a share.
Wednesday’s listing followed the bullish floats of Arm Holdings PLC (NASDAQ:ARM) (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.
Elsewhere on Thursday, ARM shares were down just over 3%, trading just 30 cents above its $51.00 IPO price, while Instacart (NASDAQ:CART) similarly is only a few cents above its IPO price, trading this morning at $30.25.
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.
While 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’.