Marketing and data automation provider Klaviyo Inc. is elevating its target to $557 million for what is expected to be a third major US initial public offering in a week, according to people familiar with the matter.
The Boston-based company decided Sunday to raise the price range for the IPO to $27 to $29 a share, said the people who asked not to be identified because the information wasn’t public yet. The company and existing shareholders earlier planned to sell 19.2 million shares for $25 to $27 each.
At the top of the new range, the company would have a valuation of about $8.7 billion based on its fully diluted share count, according to Bloomberg News calculations.
Klaviyo, which is planning to price the share sale Tuesday, is expected on Monday to submit its revised plan to the US Securities and Exchange Commission. It’s still possible that the company could change the range again before submitting a filing.
A spokesperson for Klaviyo declined to comment.
Instacart, Arm
The higher target was set after online grocery delivery service Instacart on Friday raised its price range in its IPO. Instacart, which is incorporated as Maplebear Inc. and filed under that name, is seeking to raise as much as $660 million Monday at a valuation of more than $9 billion and begin trading Tuesday.
Both companies are following in the wake of SoftBank Group Corp.-owned semiconductor designer Arm Holdings Plc, which lodged the year’s biggest IPO and then rose 25% Thursday in its trading debut.
Like Arm and Instacart, Klaviyo has signed up cornerstone investors. BlackRock Inc. and AllianceBernstein LP have expressed interest in buying as much as $100 million of the IPO shares in aggregate, according to Klaviyo’s filings.
Summit, Shopify
Klaviyo had net income of about $15 million on revenue of $321 million for the first six months of the year, compared with a loss of $25 million on revenue of $208 million for the same period last year, according to the filing.
Klaviyo’s investors include growth equity firm Summit Partners, e-commerce platform Shopify Inc., and the venture firm Accomplice.
The offering is being led by Goldman Sachs Group Inc., Morgan Stanley and Citigroup Inc. Klaviyo plans for its shares to trade on the New York Stock Exchange under the symbol KVYO.
(Updates with cornerstone investors in eighth paragraph)
