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