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Klaviyo prices IPO above range, analyst flags 'unrivaled' ROI profile

EditorAmbhini Aishwarya
Published 20/09/2023, 11:26
© Reuters.
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Klaviyo has priced approximately 19.2 million shares of its Series A common stock at an initial public offering (IPO) price of $30 per share, according to the company's announcement.

The company previously revised its indicated IPO price range from $25-$27 per share to $27-$29 per share on Monday.

The IPO consists of approximately 11.5 million shares offered by Klaviyo itself and approximately 7.7 million shares to be sold by some existing Klaviyo stockholders. BlackRock (NYSE:BLK) and AllianceBernstein (NYSE:AB) have already agreed to buy up to $100 million worth of shares each.

The gross proceeds from this offering are expected to total around $345.2 million. Klaviyo will not receive any proceeds from the sale of shares by existing stockholders.

Trading of Klaviyo shares under the ticker symbol KVYO is expected to commence on the New York Stock Exchange later today. The offering is scheduled to close on September 22nd.

Goldman Sachs & Co. (NYSE:GS), Morgan Stanley (NYSE:MS), and Citigroup (NYSE:C) are serving as the lead book runners. Barclays (LON:BARC), Mizuho (TYO:8411), and William Blair are acting as joint book runners, while Piper Sandler and Truist Securities are also participating as book runners.

Additionally, Baird, Canaccord Genuity (TSX:CF), Needham & Company, and TD Cowen are taking on roles as co-managers in this IPO.

Third Bridge analysts believe that Klaviyo’s short-term growth “could exceed 57% given this was achieved during an ecommerce dip, but long-term they will need increased traction on other ecommerce platforms as they reach saturation with Shopify (NYSE:SHOP) users.”

“Klaviyo’s massive return-on-investment is unrivaled by any competitor or set of vendors,” they said.

 

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