Shopify-backed Klaviyo attracts BlackRock in rare 2023 IPO

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Marketing and data automation provider Klaviyo Inc. has attracted cornerstone investors including BlackRock Inc. for a U.S. initial public offering that’s set to raise as much as US$518 million.

The Boston-based company is offering 11.5 million shares for US$25 to US$27 each, while existing shareholders plan to sell 7.7 million shares, it said in a filing Sept. 11 with the U.S. Securities and Exchange Commission.

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It joins Instacart, which also set a price range and embarked on its IPO roadshow Sept. 11.

BlackRock and AllianceBernstein LP have expressed interest in buying as much as US$100 million of IPO shares in aggregate, according to the filing.

Based on its fully diluted share count, the company could be valued between US$7.7 billion to US$8.3 billion, according to Bloomberg News calculations.

Along with Instacart, the listing could help unstick the backlog of companies whose plans to go public have been stymied by the longest lull in U.S. listings since the financial crisis in 2009. Arm Holdings Ltd., the semiconductor designer owned by SoftBank Group Corp. is the largest on tap and is planning to raise as much as US$4.87 billion later this week.

Others that have either already filed for IPOs or are pursuing them include online grocery delivery company Instacart, Vietnam-based internet startup VNG Ltd. and footwear maker Birkenstock.

Klaviyo had net income of about US$15 million on revenue of US$321 million for the first six months of the year, compared with a loss of US$25 million on revenue of US$208 million for the same period last year, according to the filing.

Investors include growth equity firm Summit Partners, e-commerce platform Shopify Inc., and the venture firm Accomplice.

The offering is being led by Goldman Sachs Group Inc., Morgan Stanley and Citigroup Inc. Klaviyo plans for its shares to trade on the New York Stock Exchange under the symbol KVYO.

— with assistance from Michael Hytha.

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