Klarna has priced its US IPO at USD 40 per share, more than the previously guided USD 35 – USD 37 per share range.
This brings the company’s valuation to approximately USD 15.2 billion, as it raised over USD 1.4 billion in its IPO. The offering delivers 34,311,274 ordinary shares, with Klarna selling 5 million shares and existing shareholders offering 29,311,274 shares. The offering was oversubscribed by 25 times, according to Reuters.
Klarna’s IPO journey
Klarna will be listed on the New York Stock Exchange on Wednesday under the ticker "KLAR." The offering will close on Thursday, subject to customary closing conditions, with Goldman Sachs, J.P. Morgan and Morgan Stanley serving as joint book runners.
The current valuation is significantly lower than the company’s 2021 worth of USD 45 billion after ascending as a BNPL lender. Klarna’s valuation dropped to USD 6.7 billion in 2022 amid rising interest rates and inflation.
Klarna has been planning a listing in the US for years now, and paused its efforts this Spring due to uncertainties regarding sweeping US tariffs on its trading partners, resulting in delayed operations. The Swedish company experienced a deficit attributed to one-time expenses linked to restructuring, share-based compensation, and depreciation. Despite the wider loss, Klarna’s revenue rose 13% year-over-year, reaching USD 701 million. The company also reported having 100 million active users and 724.000 merchant partners worldwide.
While its user count and gross merchandise value continue to increase, profitability remains a challenge. Klarna was the most profitable until its US expansion in 2019, just before the online shopping boom driven by the Covid-19 pandemic.
However, specialists say Klarna's brand power might help secure its footing among fintechs, as the sector is rapidly evolving and the company’s recognition would be a key business model in remaining relevant.
For more information about Klarna, please check out their detailed profile in our dedicated, industry-specific Company Database.
