Key Points
- Klarna aims for a US listing, valuing the company at up to $14 billion.
- The IPO plans to sell 34.3 million shares at a price range of $35 to $37 per share, raising $1.27 billion.
- The company paused its IPO plans in April due to market volatility. Klarna’s valuation soared from $5.5 billion to $46.5 billion in two years.
- Goldman Sachs, JPMorgan, and Morgan Stanley are the lead underwriters.
Klarna, the Swedish “buy now, pay later” financial technology (fintech) company, is renewing its pursuit of a US initial public offering (IPO), aiming for a valuation of up to $14 billion. This move comes after a period of market uncertainty that forced the company to postpone its plans earlier this year. The renewed attempt signals a resurgence in investor confidence towards high-growth fintech startups, following a recent lull in activity.
The IPO will see Klarna and some of its investors offering 34.3 million shares, priced between $35 and $37 per share, potentially raising $1.27 billion in capital.
This ambitious target reflects the company’s remarkable growth trajectory, with its valuation skyrocketing from $5.5 billion to $46.5 billion within a span of just two years. This dramatic increase was fueled by several successful funding rounds between mid-2020 and 2021.
Klarna’s decision to pursue a US listing underscores the growing popularity of buy-now, pay-later services, particularly among younger consumers who appreciate the flexibility these payment options offer.
The company’s strategy extends beyond its core offering, with the launch of banking products and strategic partnerships with prominent global brands like Zara, H&M, Coach, and Sephora. This diversification strengthens Klarna’s position in the rapidly expanding fintech market.
As of June 30th, Klarna boasts an impressive user base of 111 million active consumers and serves approximately 790,000 merchants across 26 countries. The company plans to list its shares on the New York Stock Exchange under the ticker symbol “KLAR,” with Goldman Sachs, J.P. Morgan, and Morgan Stanley serving as the lead underwriters.
The successful completion of this IPO will mark a significant milestone for Klarna and solidify its position as a major player in the global fintech landscape.
