By Jaiveer Shekhawat and Echo Wang
(Reuters) – Klaviyo’s shares jumped nearly 23% in their NYSE debut on Wednesday, helping the marketing automation firm notch a valuation of $11.3 billion.
The stock opened at $36.75, compared with the initial public offering (IPO) price of $30.
The Boston-based company’s IPO of 19.2 million shares was priced above range on Tuesday, raising $576 million in proceeds, part of which will go to existing investors who cashed out some of their holdings.
The offering gave Klaviyo a valuation of $9.2 billion. BlackRock and AllianceBernstein have agreed to buy up to $100 million worth of shares each, accounting for a big chunk of the total IPO proceeds.
“Every consumer business is building more and smarter digital relationships with their customers. This is a very durable trend. We’re just at the start of that,” said Andrew Bialecki, co-founder and CEO of Klaviyo.
“Being a public company shows that you’re in it for the long haul.”
Successful debut of Klaviyo would underscore a revival in the IPO market, which has been on ice for nearly 18 months after the end of an easy-money regime prompted investors to question the valuations of high-flying startups.
Both Arm and Instacart have seen strong debuts in recent days but have given back most of their gains following their first-day pops. However, their shares are still above their respective IPO prices.
Founded in 2012 by software engineers Bialecki and Ed Hallen, Klaviyo helps store and analyze data for e-commerce brands, enabling them to send out personalized marketing emails and messages to potential customers.
(Reporting by Jaiveer Singh Shekhawat and Niket Nishant in Bengaluru; Editing by Anil D’Silva, Vinay Dwivedi and Shounak Dasgupta)