Klarna, the Swedish buy now, pay later (BNPL) giant, has officially filed for an initial public offering (IPO) in the United States. The fintech company confidentially submitted the relevant paperwork to the U.S. Securities and Exchange Commission (SEC), it said last night. Allegedly, the firm was in talks with banks about a New York IPO and was targeting a $20bn price tag.
IPO Filing
Klarna has confidentially submitted a draft registration statement to the U.S. Securities and Exchange Commission (SEC) for a proposed IPO of its ordinary shares. This marks the formal start of the listing process, ending months of speculation about the company’s public debut.
Valuation and Pricing
The number of shares to be offered and the price range for the IPO have not yet been determined. However, recent estimates suggest:
- Klarna is reportedly targeting a valuation of around $20 billion1.
- Shareholder Chrysalis recently increased the value of its stake, implying a valuation of approximately $14.6 billion for Klarna14.
This represents a significant improvement from Klarna’s $6.7 billion valuation in 2022, though still below its peak valuation of $45.6 billion in 2021.
Timeline and Market Conditions
- The IPO is expected to take place after the SEC completes its review process, subject to market and other conditions.
- CEO Sebastian Siemiatkowski previously suggested that a 2025 listing “sounds reasonable,” though no formal date had been set.
Business Performance
- Klarna has seen improved financial performance, with revenue rising 27% in the first half of 2024.
- The company reported adjusted profits of $66 million in the first half of 2024, compared to a $45 million loss in the same period of 2023.
- Klarna’s push into the U.S. market has been particularly successful, with a 93% year-on-year rise in gross profit in the country.
Market Impact
- Klarna’s IPO is seen as a significant milestone for the BNPL industry and the broader fintech sector.
- The listing is expected to take place in the U.S., which may be seen as a setback for European stock exchanges that had hoped to attract the high-profile listing.
This IPO filing represents a major step for Klarna as it seeks to capitalize on its growth and expand its presence in the global fintech market, particularly in the United States.
