Klaviyo loses steam as Fed takes a toll, finishes up 9% in debut

Alliancebernstein Holding LP

20/09/2023 21:57

(Updates to market close)
    ** Marketing automation firm Klaviyo Inc's  KVYO.N  shares
jumped in debut on Weds, but turned sharply lower after a
hawkish Fed, leaving them at $32.76, 9.2% above $30 IPO price
    ** KVYO opened at $36.75 and traded as high as $39.47 early
on. However, in the last half hour of trading shares tumbled to
as low as $30.26
    ** U.S. central bank projected another rate increase by end
of this year and expected monetary policy to be significantly
tighter through 2024 than previously thought, sending the S&P
500  .SPX  down 0.9% and Nasdaq  .IXIC  down 1.5% on the session
    ** Klaviyo's IPO of 19.2 mln shares priced $1 above already
upwardly revised range for $576 mln gross raise
    ** Co sold ~11.5 mln shares, while existing holders sold
~7.7 mln shares, per the prospectus filing
    ** BlackRock Inc  BLK.N  and AllianceBernstein indicated to
buy up to $100 million worth of shares each, or roughly 35% of
the IPO
    ** Klaviyo's backers include Canada's e-commerce giant
Shopify  SHOP.TO  and investment firm Summit Partners, which
sold ~4.9 mln shares of offering but will still own about 21.5%
of the co
    ** Goldman Sachs, Morgan Stanley and Citigroup acting as
lead book runners for Klaviyo's IPO
    ** The selloff in equities on Weds also hit recent market
debutantes SoftBank Group Corp's  9984.T  chip designer Arm
 ARM.O  and delivery app Instacart  CART.O . ARM fell for 4th
straight session, ending down 4.1% at $52.91, while CART briefly
broke below its $30 IPO price to $29.96, before finishing off
10.7% at $30.10

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))