Learn
Newsletter
Offers
Podcast
About
  Back
~
1
min read
· Posted on
February 21, 2024

Klaviyo pops on debut so expect another 4,560,321 emails from your fav shop from 2017

Klaviyo listed on the Nasdaq and saw its shares surge by 32% on debut and finish the day up 9%.

What's the key learning?

  • After 18 months of quiet in the tech IPO scene, Klaviyo's results after its Nasdaq listing could be a sign that investors are coming out of their hibernation.
  • Klaviyo only floated around 7.6% of its total outstanding shares, which looks like a purposely "low float."
  • A low float is when a company only offers a small number of shares to investors when it goes public.

👉 Background: Klaviyo is the marketing software company that helps businesses communicate with their customers. Think: automated emails, text messages and all the analytics behind it.

👉 What happened: Late last week, Klaviyo listed on the Nasdaq and saw its shares surge by 32% on debut and finish the day up 9%. And, after 18 months of quiet in the tech IPO scene, this could be a sign that investors are coming out of their hibernation.

👉 What else: Interestingly, Klaviyo only floated around 7.6% of its total outstanding shares... which looks like a purposely "low float."

What's the key learning?

💡A low float is when a company only offers a small number of shares to investors when it goes public.

💡This strategy is becoming quite common these days:

  • Arm floated just over 9% of its outstanding shares and popped 25% when it listed.
  • Instacart floated 8% of its outstanding shares and popped 43% once listed.
  • Klaviyo listed 7.6% of oustanding shares and also popped 32%.

💡By restricting supply, it pushes eager investors through a tigher door, which has the effect of squeezing the share price higher... in the short term.

‍

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

Sign Up
A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
© 2024 Flux Technologies Pty Ltd and Flux Media Pty Ltd
All rights reserved.
Explore
HomeLearnPodcastAboutNewsletterFlux at Work
Offers
Home LoansSavings AccountsBank AccountsShare TradingCar LoansCredit Cards
Support
CareersContact usPrivacy PolicyTerms of Use
Disclaimer: Flux Technologies Pty Ltd (ABN 86 634 507 172) is an authorised representative (Representative No. 525288) of Mozo Pty Ltd who is the holder of AFSL No. 328141. We also provide general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product. Any product advice presented is of a general nature only, and is not to be taken as any sort of advice as it has not taken into account your personal circumstances, objectives, financial situation or needs. Flux may not cover all products available to you. Check out our Credit Guide and Financial Services Guide for more information.

All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. Flux Media Pty Ltd is the owner of the registered trade mark, 'What the Flux'. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.