▼ Summary
– Klarna and its shareholders are reviving its IPO, aiming to raise up to $1.27 billion with a valuation of up to $14 billion.
– The company and shareholders are selling approximately 34.3 million shares priced between $35 and $37 each, with Klarna receiving proceeds from about 5.6 million shares.
– Klarna plans to list on the New York Stock Exchange under the ticker “KLAR”.
– The company’s valuation previously peaked at over $45 billion in 2021 but declined by 85% to $6.5 billion after the venture capital bubble burst.
– Klarna’s Q2 revenue grew 54% to $823 million year-over-year, though it reported a net loss of $53 million, which was 42% lower than the previous year.
Klarna has reignited its plans for a major initial public offering, aiming to secure up to $1.27 billion through the sale of shares. The Swedish fintech firm, known for its popular buy-now, pay-later services, is targeting a valuation as high as $14 billion in what could become one of the most closely watched market debuts of the year.
According to a recent update to its registration statement, the company and certain shareholders intend to offer approximately 34.3 million shares. Pricing is expected to fall between $35 and $37 per share. Klarna itself will issue around 5.6 million shares, with existing shareholders offering nearly 29 million. The transaction is structured to provide liquidity for early investors while raising capital to support the company’s continued expansion.
Klarna will list on the New York Stock Exchange under the ticker symbol “KLAR”, marking a significant milestone for the European fintech giant. For years, market observers anticipated a public offering from Klarna, especially after its valuation soared past $45 billion in 2021. That period represented the peak of the buy-now, pay-later trend, fueled by a surge in online shopping and low-interest-rate policies.
However, the company postponed its IPO as market conditions shifted dramatically. The end of the zero-interest-rate era and a broader tech valuation correction caused Klarna’s private market valuation to drop sharply, falling about 85% to $6.5 billion. Despite this contraction, the company has demonstrated impressive operational resilience.
In its most recent quarterly report, Klarna posted a 54% year-over-year revenue increase, reaching $823 million. This growth was supported by a 14% rise in gross merchandise volume, which climbed to $6.9 billion. Although the company continues to operate at a net loss, it has made substantial progress toward profitability. Losses narrowed significantly to $53 million, a 42% improvement compared to the same period last year.
A syndicate of leading investment banks is managing the offering. Goldman Sachs, JP Morgan, and Morgan Stanley are serving as lead underwriters, with additional support from BoFA Securities, Citigroup, Deutsche Bank, Societe Generale, UBS, and several other financial institutions. The broad involvement of major banks underscores the significance of this offering within global financial markets.
(Source: TechCrunch)
