Trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 30, 2023. REUTERS/Brendan McDermid
(Reuters) - Marketing automation company Klaviyo was set to list its shares on the New York Stock Exchange on Wednesday, in a third big test for the market for new issues following smooth debuts of Arm Holdings and Instacart.
The Boston-based company's initial public offering 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.
A 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 the first-day pops. However, their shares are still above their respective IPO prices.
Founded in 2012 by software engineers Andrew 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 Niket Nishant in Bengaluru; Editing by Anil D'Silva)
