Valued at $9.2 billion! Will Klaviyo's listing tonight see a surge similar to Arm and Instacart on their first day?

Headquartered in Boston, marketing software company Klaviyo priced its IPO at $30 per share with the stock symbol KVYO, and will officially debut on the New York Stock Exchange tonight.

On a fully diluted basis, Klaviyo will have 306 million shares outstanding, resulting in a market capitalization of approximately $9.2 billion based on the IPO price.

Arm went public last week at $51 per share and saw a 25% increase on its first day. Maplebear, the parent company of Instacart, went public at $30 per share and closed up 12% on its first day.

Amid the recovery of IPOs in the US stock market, will Klaviyo experience a significant surge tonight?

Klaviyo Raises IPO Pricing

On Monday, Klaviyo raised the IPO price range from the previously estimated $25-$27 to $27-$29.

Founded in 2012, Klaviyo helps businesses conduct digital marketing campaigns using email, SMS, and other notifications. Its competitors include Adobe, Salesforce, and MailChimp, which is owned by Intuit.

The offering consists of 19.2 million shares, including 11.5 million shares sold to shareholders. This includes 5 million shares from venture capital firm Summit Partners, which will still hold a 21% voting power after the IPO.

Klaviyo has two classes of stock - Class A and Class B - with Class B having 10 votes per share and Class A having 1 vote per share. Insiders control the Class B shares, which collectively account for over 99% of the voting power.

After the listing, Shopify will hold an 11.5% voting power in the company, with its stake valued at approximately $1 billion based on the IPO price, slightly higher than 10% of the market value of the e-commerce software company. After the listing, CEO Andrew Bialecki will hold a 39% voting power.

Revenue Closely Tied to Shopify

Roth MKM analyst Rohit Mulkarni pointed out in a recent research report that over 80% of Klaviyo's annualized revenue comes from Shopify's customers.

For the six months ending June 30th of this year, Klaviyo generated $246.6 million in revenue, a YoY growth of 64%.

The projected revenue for the full year of 2022 is $344.7 million, a 67% increase from 2021.

The company turned profitable this year, with a net profit of $15.2 million for the first six months. As of the last quarter, the company's trailing twelve-month revenue was $585.1 million, a growth of 56.5%.

In its prospectus, the company stated that BlackRock and AllianceBernstein have agreed to purchase up to $100 million worth of shares at the IPO price. Goldman Sachs, Morgan Stanley, and Citigroup are the lead underwriters for this transaction.