Klaviyo Inc., the Boston-based marketing and data automation firm, has reportedly increased its initial public offering (IPO) target to $557 million for its Tuesday IPO. The decision comes during a busy week for the U.S. financial markets characterized by significant IPOs.
The company had previously aimed to sell 19.2 million shares at a price range of $25 to $27 each. However, Klaviyo decided to revise this range upwards to $27 to $29 per share on Sunday. This new pricing could potentially value the company at approximately $8.7 billion, based on its fully diluted share count.
In the first half of this year, Klaviyo reported a net income of around $15 million on revenue of $321 million. This performance contrasts with the same period last year when the company reported a loss of $25 million on revenue of $208 million.
Klaviyo's IPO follows in the footsteps of semiconductor designer Arm Holdings Plc, owned by SoftBank (TYO:9984) Group Corp., which launched this year's largest IPO and saw its shares rise by 25% on its first day of trading. Similarly, online grocery delivery service Instacart, officially known as Maplebear Inc., also recently raised its IPO price range and seeks to raise up to $660 million at a valuation surpassing $9 billion.
Among Klaviyo's investors are growth equity firm Summit Partners, e-commerce platform Shopify (NYSE:SHOP) Inc., and venture firm Accomplice. The IPO is being led by Goldman Sachs Group Inc (NYSE:GS)., Morgan Stanley, and Citigroup Inc (NYSE:C)., with plans for Klaviyo's shares to be traded on the New York Stock Exchange under the symbol 'KVYO'.
The company is expected to submit its revised plan for the IPO to the U.S. Securities and Exchange Commission today ahead of its planned share sale on Tuesday. Klaviyo, however, declined to comment on these developments.
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