Klaviyo’s blockbuster IPO shatters records, raising $576 million

Klaviyo Inc. has made a significant splash in the financial markets with its recent initial public offering (IPO). The company successfully raised an impressive $576 million in its third major US listing in just over a week.

On Tuesday, Klaviyo, together with a consortium of its existing investors, managed to sell 19.2 million shares at $30 each. As reported by industry sources, this price point was significantly higher than the initial marketing range of $27 to $29 per share. The feat puts the Boston-based company at a completely undervalued valuation of about $9 billion.

Klaviyo’s filing

Klaviyo’s filing revealed that in the first half of the year, the company achieved net income of nearly $15 million on strong revenues of $321 million. This represents a significant improvement from last year when the company reported a loss of $25 million on revenues of $208 million during the same period.

Its notable IPO follows the equally impressive debut of online grocery delivery giant, Instacart. Instacart shares rose 12% after the IPO, which raised $660 million. The developments are part of a trend started by SoftBank Group Corp-owned semiconductor designer Arm Holdings Plc, which made waves with the year’s biggest U.S. IPO at $5.23 billion, rising as much as 25% on its trading debut.

Klaviyo acquired BlackRock Inc. and AllianceBernstein LP, both of which expressed interest in purchasing a combined $100 million worth of IPO shares, as shown in their filings with the U.S. Securities and Exchange Commission.

Klaviyo’s investors

Klaviyo’s major investors include growth equity firm Summit Partners, e-commerce powerhouse Shopify Inc., and venture firms Accomplish and Accel. The largest shareholder within Klaviyo remains its co-founder and chief executive officer, Andrew Bialecki. They will retain considerable control with 39% of the voting power, followed by Summit Partners with 21%.

The lead financial institutions for Klaviyo’s IPO were Goldman Sachs Group Inc., Morgan Stanley, and Citigroup Inc. The company’s shares are expected to begin trading on the New York Stock Exchange on Wednesday, symbolized as KVYO.