Marketing automation firm Klaviyo has raised its initial public offering (IPO) price range to between $27 and $29 per share, up from the initial $25 to $27 per share. The move targets a valuation of nearly $9 billion as the company prepares to hit the market on Wednesday, September 20, 2023. This follows a period of significant tech IPOs including semiconductor designer Arm and grocery delivery app Instacart.
Instacart, owned by Maplebear Inc, successfully priced its IPO at the top of its indicated range on Tuesday, achieving a fully diluted valuation of $9.9 billion. The shares started trading on NASDAQ today, raising $660 million with the company pricing it at $30 per share following strong investor demand. This valuation is notably lower than the $39 billion valuation assigned during a private fundraising round in March 2021.
Klaviyo obtains significant recurring revenues from Shopify (NYSE:SHOP), which owns around 11% of its shares. The performance of recent IPOs, especially that of Klaviyo, is being seen as an indicator for other tech firms contemplating market debuts. However, current valuations suggest Klaviyo may face a reduced valuation compared with its last private fundraising in 2021.
The company's IPO comes at a time when industry peers and investors are closely monitoring valuations in the sector. Stakeholders in Attentive, Klaviyo’s main competitor, are particularly interested as it provides an indication of the sector's health and prospects.
This flurry of tech IPOs is seen as a sign of the U.S. IPO market's rebound after a dry spell throughout most of this year and 2022. This follows SoftBank (TYO:9984) Group Corp's chip designer Arm floating on Nasdaq last week at a $54.5 billion fully diluted valuation, which has since risen to $62 billion after three days of trading.
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