The Shopify-backed marketing-tool maker priced 19.2 million shares at US$30 apiece Tuesday, higher than its already upsized indicated IPO range of US$27 to $29. In its first day of trading on the New York Stock Exchange Wednesday, Klaviyo shares surged 23 per cent to an intraday high of US$37, before closing at US$32.76. (The Logic)

Talking point: The offering price gave the company a US$9.2-billion valuation, close to its last known value of US$9.5 billion during a 2021 financing round. Boston-based Klaviyo’s strong IPO is good news for Ottawa-headquartered Shopify, which has a possible maximum 11.2 per cent stake in the company should it exercise all its warrants and stock options. Klaviyo’s business model is highly dependent on a long-term partnership with Shopify through which Shopify recommends Klaviyo’s services to its Shopify Plus merchants. More than three quarters of its annualized recurring revenue comes from customers who use Shopify’s platform. Klaviyo’s stock surge on its first day of trading follows a similar IPO narrative for Instacart and Arm, signalling that the market for new tech listings may be making a comeback.