Klaviyo, a Boston-based marketing software company, has priced its initial public offering at $30 a share late Tuesday, according to a source familiar with the situation.
On a fully diluted basis, Klaviyo will have 306 million shares outstanding, giving the company a market value of about $9.2 billion at the IPO price.
On Monday, Klaviyo increased the expected price range for the offering to between $27 to $29 per share, from a previous estimate of $25 to $27. The company will be listed on the New York Stock Exchange under the ticker symbol KVYO, with trading to begin on Wednesday.
This is the third in a series of technology IPOs after several months when the new technology issuance window has essentially closed. Arm Holdings (ticker: ARM), a U.K.-based chip designer, went public last week at $51 a share and quickly rose 25%, though it has since given up most of the initial gains. Maplebear (CART), Instacart’s parent company, went public at $30 a share, opened for trading Tuesday at $42, then closed its first day as a public company at $33.70.
Klaviyo, founded in 2012, helps businesses with digital marketing campaigns that use email, text messages and other notifications. The company competes with companies such as Adobe
,
Sales force
,
And guess
‘s
MailChimp module.
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The offering amounts to 19.2 million shares, including 11.5 million for sale to shareholders. The total includes five million shares of investment firm Summit Partners, which will still have a 21% voting stake after the offering.
Klaviyo has two classes of stock – A shares and B shares – with B shares getting 10 votes each, versus 1 vote per A share. Insiders control the Class B shares, which together represent more than 99% of the voting rights in the stock. Shopify will have an 11.5% voting stake in the company after the offering, with its stake worth about $1 billion at the IPO price, just over 1% of the e-commerce software company’s market capitalization. CEO and co-founder Andrew Bialecki will own 39% of the voting power after 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 posted revenue of $246.6 million, up 64% from the same period a year earlier. Full-year 2022 revenue was $344.7 million, up 67% from 2021. The company was profitable this year, with net income for the first six months at $15.2 million. Trailing 12-month revenue during the fourth quarter was $585.1 million, up 56.5%.
The company indicated 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 eric.savitz@barrons.com
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