Report: Klaviyo Considers Pricing IPO Above Indicated Range

Klaviyo is reportedly considering pricing its initial public offering (IPO) at the top of its indicated price range or even slightly above it.

The marketing automation company is in discussions with its IPO underwriters about the possibility of selling shares at $29 or $30 apiece, Reuters reported Tuesday (Sept. 19), citing unnamed sources.

This comes after Klaviyo revised its indicated IPO price range from $25 to $27 per share to $27 to $29 per share in a Monday filing with the Securities and Exchange Commission (SEC).

Klaviyo did not immediately reply to PYMNTS’ request for comment.

If Klaviyo prices its IPO at $29 per share, it would raise $557 million and be valued at approximately $9 billion on a fully diluted basis, according to the report. The final pricing decision will be made on Thursday (Sept. 21) evening.

The company announced its plans to go public on Aug. 25, when it filed paperwork with the SEC saying it intends to list on the New York Stock Exchange.

Founded in 2012, Klaviyo began as a platform for retail and eCommerce companies, although it says it has begun seeing interest from companies in other sectors. These sectors include education, events and entertainment, restaurants, travel and B2B companies, the firm said in its Aug. 25 SEC filing.

“As we continue to scale our platform, we expect that our total addressable market will expand to businesses in all verticals that engage with third parties, including customers and clients, through email, SMS or push,” Klaviyo said in the filing. “Accordingly, we estimate that the total addressable market opportunity for our platform across all of these verticals is $34 billion in the United States alone.”

Tuesday’s report by Reuters comes a day after Instacart announced that it was pricing its IPO at the high end of expectations — $30 per share — after raising its target price range from $26 to $28 per share the previous week. At the new price, Instacart would have a fully diluted valuation of $9.9 billion.

The reported moves by Klaviyo and Instacart come at a time when the IPO market is showing signs of resurgence, with the market gaining momentum and investor demand for new issues on the rise.

Encouraged by this trend, the firms are boosting their target price.