By Sri Hari N S and Manya Saini
(Reuters) -Klaviyo is seeking a fully-diluted valuation of up to $8.4 billion in its initial public offering (IPO) in the United States, the marketing firm said on Monday, as it becomes the latest company to tap a growing wave of stock market listings.
SoftBank-backed chip designer Arm Holdings Ltd, grocery delivery service Instacart and biopharmaceutical firm Neumora Therapeutics have teed up their IPO plans, signaling a thaw in the market for new issues that had remained moribund for nearly two years.
Boston-based Klaviyo, which operates an email marketing platform, and its selling shareholders are offering 19.2 million shares at $25 to $27 apiece and are aiming to raise $518.4 million at the top end of the range.
However, the company's proposed valuation is a climb-down from the $9.15 billion pre-money valuation at which Klaviyo last raised capital in 2021, reflecting a broader gloom in the technology startup ecosystem.
Klaviyo, whose co-founder and CEO Andrew Bialecki holds a 38% stake, also counts Canadian e-commerce giant Shopify and affiliates of investment company Summit Partners as its shareholders.
Founded in 2012, Klaviyo helps store and analyze data for e-commerce brands that enables them to send out personalized marketing emails and messages to potential customers.
It has a headcount of over 1,500 and more than 130,000 customers as of June 30. The company also operates internationally, including in the United Kingdom and Australia.
Klaviyo posted 51% growth in revenue to $164.6 million for the three months ended June 30.
Like Instacart, which also set terms for its IPO on Monday, Klaviyo is profitable, a factor that could help it find favor among picky investors who have been prioritizing sustainable earnings over ambitious growth targets.
The company is expected to debut in September, a busy month for stock market listings that could serve as a litmus test for other companies looking to go public.
Certain funds and accounts managed by asset manager BlackRock and entities affiliated with AllianceBernstein L.P. have separately indicated an interest in buying a total of up to $100 million in the offering, Klaviyo said.
It expects to trade on the New York Stock Exchange under the ticker symbol "KVYO".
Goldman Sachs, Morgan Stanley and Citigroup are lead underwriters for the offering.
(Reporting by Sri Hari N S and Manya Saini in Bengaluru; Additional reporting by Niket Nishant; Editing by Shweta Agarwal and Maju Samuel)