Klarna Aims to Raise $1.27 Billion in IPO Valued at Up to $14 Billion on NYSE

Klarna, a leading Swedish buy-now, pay-later (BNPL) company, is reviving its initial public offering (IPO), aiming to raise up to $1.27 billion in a listing that could value the firm at up to $14 billion.

The company, along with some of its shareholders, plans to sell approximately 34.3 million shares priced between $35 and $37 each. Klarna will receive proceeds from about 5.6 million shares, while shareholders will offload nearly 29 million shares.

The company intends to list its shares on the New York Stock Exchange under the ticker “KLAR”.

Expected to go public for quite some time due to the immense success of its BNPL lending model amidst post-pandemic growth, Klarna reached a valuation of over $45 billion in 2021. However, the company delayed its IPO plans as the market shifted at the end of the ZIRP era, with its price tag dropping by 85% to $6.5 billion when the 2021 venture capital valuation bubble burst.

Despite this setback, Klarna has continued to grow: its revenue surged 54% to $823 million in Q2 compared to the previous year, driven by a 14% increase in gross merchandise value to $6.9 billion. The company’s net loss reduced by 42% to $53 million, down from $92 million a year earlier.

Goldman Sachs, JP Morgan, and Morgan Stanley are leading the offering, with BoFA Securities, Citigroup, Deutsche Bank, Societe Generale, UBS, and several other banks working on the deal.