Klarna Targets $14B Valuation in Resurrected US IPO

Swedish buy now, pay later (BNPL) giant Klarna officially revived its plans for a U.S. initial public offering on Tuesday, aiming to raise up to $1.27 billion on the New York Stock Exchange to capture a valuation of up to $14 billion.

Pricing Details and Share Structure

The fintech firm and its existing shareholders plan to offer approximately 34.3 million shares priced between $35 and $37 per share, according to an updated SEC registration statement. Under this structure, Klarna will secure proceeds from roughly 5.6 million shares, while selling shareholders will offload nearly 29 million shares. The company intends to list its shares under the ticker symbol “KLAR.”

From $45 Billion Peak to Market Correction

This public debut marks a major comeback for the BNPL pioneer. After capitalizing on the post-pandemic e-commerce boom, Klarna reached a staggering $45 billion valuation in 2021. However, as the Federal Reserve ended the zero-interest-rate policy (ZIRP) era, venture capital valuations plummeted, forcing Klarna to endure an 85% downround that slashed its private valuation to $6.5 billion.

Strong Financial Growth Amid Narrowing Losses

Despite past market volatility, Klarna’s operational metrics show strong upward momentum. During the second quarter, revenue surged 54% year-over-year to $823 million, driven by a 14% increase in gross merchandise value (GMV) to $6.9 billion. While the company remains unprofitable, it narrowed its net loss by 42% to $53 million, down from $92 million in the same period last year.

Wall Street Giants Backing the Debut

Leading financial institutions Goldman Sachs, JP Morgan, and Morgan Stanley are spearheading the offering. Additional underwriters backing the high-profile listing include BofA Securities, Citigroup, Deutsche Bank, Societe Generale, and UBS.