Planned US IPO Expected to Boost Klarna’s Finances
Swedish pay-now-buy-later specialist Klarna is reportedly on the verge of an initial public offering in the US. The company aims to raise at least one billion dollars through the listing.
Swedish payment service provider Klarna is planning an IPO in the US and could file the necessary application as early as next week, according to a report by news agency «Bloomberg» (paywalled article) on Thursday.
The IPO is expected to generate at least one billion dollars in proceeds. The company’s total market valuation is estimated to exceed $15 billion, with pricing potentially set in early April.
Wild Fluctuation in Valuation
Klarna’s valuations have fluctuated significantly in recent years. In a 2021 funding round, the company reached a valuation of $45,6 billion. However, in a subsequent round in 2022, its valuation dropped to just $6,7 billion. Analysts estimated Klarna’s worth at around $14,6 billion last year, based on data from shareholder Chrysalis Investments.
According to a statement from November, Klarna had already submitted a confidential IPO filing with the U.S. Securities and Exchange Commission (SEC). The company is reportedly working with around 15 banks on the listing, including Goldman Sachs, J.P. Morgan Chase, and Morgan Stanley.
The Swedish company gained rapid traction in the e-commerce sector with its installment payment services and has experienced rapid growth.
