(Reuters) -Shares of Klaviyo were set to open up to 20% above their IPO offer price on Wednesday, giving the marketing automation company a potential valuation of $11 billion.
The Boston-based company’s initial public offering (IPO) 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 their 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 Jaiveer Singh Shekhawat and Niket Nishant in Bengaluru; Editing by Anil D’Silva and Vinay Dwivedi)
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