Instacart and Klaviyo End Tech Unicorn IPO Drought With Mixed Debuts
The US IPO market sees its first tech unicorns in years as Instacart and Klaviyo go public. Both companies finish the week at or above their offer prices despite volatile initial trading.
The US IPO market finally ends its long tech unicorn drought as grocery delivery platform Instacart and marketing software company Klaviyo go public. Despite significant anticipation leading up to their debuts, both issuers experience lackluster receptions with mixed trading throughout the week. They open well above their initial IPO prices on the first day but quickly fall from those early highs before stabilizing.
Instacart prices at the high end of its upwardly revised range to raise $660 million at a $10.0 billion market cap. The company shows solid fundamentals by growing its first-half 2023 revenue by 31% while achieving profitability, even as it faces rising competition from DoorDash. Klaviyo prices above its revised range to raise $576 million at a $9.2 billion market cap, leveraging its fast-growing customer engagement platform that serves over 130,000 customers primarily in the retail space.
By the end of the week, Instacart finishes flat at its offer price while Klaviyo finishes up 11%. Two smaller issuers also complete their public debuts, including Spanish energy storage equipment maker Turbo Energy, which raises $5 million and finishes flat, and Singapore-based Davis Commodities, which raises $4 million and finishes up 26%. Meanwhile, a couple of planned deals from previous weeks do not manage to get done.