| Highlights |
|---|
| – Klaviyo’s shares surged by 9.2% on their first day of trading. |
| – The successful IPO raised $576 million for the marketing automation firm. |
| – The IPO priced Klaviyo’s shares at $30 each, surpassing initial estimates. |
| – Trading began at $36.75, reaching a high of $37 before settling at $32.76. |
| – This marked the third major new U.S. listing in a week, breaking two years of subdued IPO activity. |
Klaviyo (KVYO) celebrated an impressive debut as its shares surged by 9.2% on their first day of trading following a triumphant $576 million initial public offering (IPO).
☞ Read more: What’s an IPO? (Initial Public Offering)
This achievement stands as the third major new listing in the U.S. within just one week, signifying a stark contrast to the preceding two years marked by subdued IPO activity.
In the IPO, the company issued 19.2 million shares at a price of $30 each, surpassing the anticipated range of $27 to $29.
This valuation translated into a total company worth of $9.2 billion. The offering comprised 11.5 million shares offered by the company itself and an additional 7.7 million from existing stockholders.
Shares commenced trading at a robust $36.75, surging as high as $37 before eventually settling at $32.76 at the close of the trading session.
Klaviyo’s software-as-a-service (SaaS) platform is tailored to assist businesses in crafting effective messages delivered through email, SMS, and push notifications.
Co-founder and CEO Andrew Bialecki highlighted the company’s mission, stating that it aims “to empower creators to control their own destinies.”
He emphasized the team’s commitment to a customer-first mentality and reiterated their dedication to building Klaviyo with this guiding principle.
Klaviyo’s entry into the market followed closely behind the public debuts of grocery delivery operator Instacart (CART) and chip designer Arm (ARM).
While both Instacart and Arm initially experienced surges in their share prices on their first trading day, they faced subsequent declines in the days that followed.
(Source: Investopedia)
