Boston-based marketing-automation software company, Klaviyo Inc. (KVYO), has announced the terms for its upcoming initial public offering (IPO). The company plans to offer 19.2 million shares, with 11.5 million shares being offered by the company itself and 7.7 million shares offered by selling shareholders.
Valuation and Fundraising
The IPO is expected to price between $25 and $27 per share, potentially raising up to $310.7 million for Klaviyo Inc. If successful, this would value the company at a substantial $6.80 billion. The stock is slated to list on the New York Stock Exchange under the ticker symbol “KVYO.” To facilitate the IPO, leading financial institutions such as Goldman Sachs, Morgan Stanley, and Citigroup have been appointed as the underwriters.
Strong Financial Performance
Klaviyo Inc. boasts impressive financial results for the first six months ended June 30. During this period, the company reported net income of $15.2 million on revenue of $321.7 million, a significant improvement compared to the same period last year, which saw a net loss of $24.6 million on revenue of $208.3 million. This upward trajectory in financial performance positions Klaviyo Inc. favorably as it prepares to enter the public market.
Timing and Market Conditions
Klaviyo Inc.’s decision to go public comes at an opportune time, considering the recent performance of the Renaissance IPO ETF and the S&P 500. Over the past three months, the Renaissance IPO ETF has gained 6.5%, while the S&P 500 has increased by 3.7%. These positive market trends could potentially bode well for Klaviyo Inc.’s debut on the stock exchange.
In conclusion, Klaviyo Inc. is poised to make a sizable impact in the market with its IPO. With an estimated valuation of $6.80 billion, impressive financial results, and positive market conditions, the company is well-positioned for success.
