Data and marketing automation company Klaviyo plans to list on the New York Stock Exchange and join the public markets, following in the footsteps of Instacart, as it aims to tap into an IPO window that has been mostly closed since late 2021.
Data and marketing automation firm Klaviyo has filed paperwork for its initial public offering (IPO), revealing significant revenue growth and profitability in its recent quarter.
Main topic: Grocery delivery company Instacart and marketing and data automation startup Klaviyo file IPO plans in 2023.
Key points:
1. Instacart has experienced fluctuations in valuation but reveals profitability with $1.48 billion in revenue in H1 2023.
2. Klaviyo is profitable, with a 51% increase in revenue in the most recent quarter.
3. Both companies are seen as potential indicators of a rebound in the startup IPO market.
British semiconductor designer Arm Holdings is planning a multibillion-dollar initial public offering (IPO) on the Nasdaq Stock Exchange in the US, aiming to raise between $8 billion and $10 billion with a valuation of $60 billion to $70 billion, positioning itself as one of the biggest IPOs of 2023.
U.S. investors are eagerly anticipating several upcoming IPOs in the coming months, including Arm Holdings, Instacart, Klaviyo, and VNG, as they hope to capitalize on the recent rally in equity markets.
EMS IPO was subscribed favorably by retail investors, with a subscription of 15.05 times on day 2 and 3.77 times on day 1, and the IPO is expected to have a strong listing with a grey market premium of +120, indicating a potential listing price of ₹331 per share.
Four upcoming IPOs, including Arm, Birkenstock, Instacart, and Klaviyo, have generated hope for the struggling IPO market, but experts believe that it is not indicative of a strong resurgence in the market and predict that it will take until 2024 or 2025 for the market to fully rebound.
Instacart has raised its proposed price range for its IPO, targeting a fully-diluted valuation of up to $10 billion, signaling strong investor demand for the grocery delivery app.
Klaviyo raises the proposed price range of its shares in its initial public offering, targeting a valuation of up to $9 billion.
Klaviyo's shares closed below their first-day high, casting doubt on the revival of the IPO market, while Arm Holdings and Instacart also experienced stock slumps due to concerns over high interest rates and declines in the U.S. stock market.
Klaviyo, a marketing software company, saw a 23% increase in stock value during its IPO, resulting in a valuation of $11.2 billion, and its founders, Andrew Bialecki and Ed Hallen, becoming billionaires by retaining a 52% stake in the company.
Wall Street's reaction to recent tech IPOs, including Instacart, Arm, and Klaviyo, has been underwhelming, with investors who bought at the IPO price making money only if they sold immediately, raising concerns about valuations.
September was a standout month for the IPO market, with companies like Arm Holdings, Instacart, and Klaviyo debuting on exchanges and raising $7.2 billion.
