After Arm Holdings' (ARM) strong IPO debut, Klaviyo (KVYO) raised its IPO price range to between $27 and $29 per share. This comes after Instacart (CART) raised its own IPO price range as well, to between $28 and $30 per share.

Yahoo Finance Live discusses what these debuts could mean for the IPO market.

Video Transcript

[AUDIO LOGO]

BRAD SMITH: Welcome back, everyone. You're watching Yahoo Finance Live. We are live from the NASDAQ market site where the IPO market feels hotter than ever here, but we got to talk about a few ones. Of course, last week was all about Arm, but this week, we're going to be focusing on a few other ones-- Instacart and Klaviyo as well. Klaviyo raised the target for its upcoming IPO in a filing this morning to $27 to $29 per share. That's the new range that's up from the previously stated $25 to $27 per share range.

Now, this move comes just days after Instacart raised its price range after Arm Holdings' stellar debut. So the IPO market here in 2023 trying to find some-- some signs of footing at least here late in the game.

JULIE HYMAN: Yeah. It was a very strong debut from Arm like you were just saying. We saw shares pop what? Just about 25% in its first day of trading, pulled back just a bit on Friday, but still up about 20% from where the company priced. So clearly, a huge demand here for Arm, lots of success, of course, and that led Instacart to raise its valuation here. What they're seeking to raise when it prices tonight and then, of course, we're going to hear from Klaviyo tomorrow.

So there is a lot riding on these next couple of debuts. Whether or not we'll see that momentum carry through with Instacart with its first day of trading tomorrow, and then Klaviyo later this week, what exactly that's going to do for future IPO activity. There has been pretty much general consensus that if we do see three very strong debuts, maybe that's going to be enough here to thaw some of the IPO freeze that we have seen. Ever since what? Last 18 months at least, 19 months. We haven't seen much activity at all.

BRAD SMITH: Look, I'm excited. For anybody that's tracking at home and trying to keep tabs on some IPO trivia, if you will, here's a few things just throw your way real quick. Instacart actually is a company named Maplebear at the end of the day. Maplebear Inc. Is the parent company and the company that's essentially taking Instacart public there.

And interesting here, particularly as the leading grocery technology partner here to about 1,400 retail banners representing 85% of the US grocery market. So that for your Instacart trivia there, Maplebear, may I say. Also here, when we talk about Klaviyo, you should remember that this is a company that has total revenue base right now of about $585 million.

They saw revenue growth over the last 12 months ending June 30 at about 56.5% there, and they've got about 1,400 customers that are over this 40k annualized recurring revenue. So how can they continue to sell into that portfolio and client base? That is going to be key for them to communicate to the street total customers of about 130,000-plus to their benefit right now.