Boston-based marketing software firm Klaviyo has set its initial public offering (IPO) price at $30 per share, marking its entry into the recent wave of technology IPOs. The company, founded in 2012, will be listed on the New York Stock Exchange under the ticker symbol NYSE:KVYO.
The IPO offering consists of 19.2 million shares, including 11.5 million for selling shareholders, which places the company's market value at approximately $9.2 billion based on the IPO price. Upon listing, Klaviyo will have 306 million shares on a fully diluted basis.
In relation to this development, venture firm Summit Partners is set to sell five million shares while retaining a 21% voting interest post-offering. Klaviyo's stock is divided into two classes: Class A and Class B, with Class B shares carrying ten times the voting power of Class A shares. Notably, insiders hold over 99% of the total voting interest through their control over Class B shares.
E-commerce software firm Shopify (NYSE: SHOP ) will maintain an 11.5% voting interest in Klaviyo post-IPO, valuing its stake at about $1 billion - slightly over 1% of Shopify’s market capitalization. Andrew Bialecki, CEO and co-founder of Klaviyo, will retain a 39% voting control after the IPO.
Prior to setting the final price, Klaviyo had adjusted its expected price range for the offer from $25-$27 to $27-$29 per share following successful public listings by other tech firms such as Arm Holdings (NASDAQ: ARM ) and Maplebear's Instacart.
Financially, Klaviyo has shown strong growth with a revenue increase of 64% for the first half of this year compared to the same period last year, reaching $246.6 million. The company's full-year revenue for 2022 stood at $344.7 million, marking a 67% increase from the previous year. Additionally, Klaviyo turned profitable this year, with a net income of $15.2 million for the first six months.
In its prospectus, Klaviyo disclosed that investment management companies BlackRock (NYSE: BLK ) and AllianceBernstein (NYSE: AB ) have agreed to purchase up to $100 million of stock at the IPO price. Goldman Sachs (NYSE: GS ), Morgan Stanley (NYSE: MS ), and Citigroup (NYSE: C ) are leading the underwriting group for this deal.
Research by Roth MKM analyst Rohit Mulkarni indicates that over 80% of Klaviyo's annualized revenue is generated from Shopify customers, highlighting the significant partnership between the two firms.
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