Swedish Buy Now, Pay Later giant Klarna has announced the launch of its New York IPO, valuing the company at $14 billion.
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KLAR Ticker
The company is planning to sell 34.3 million shares in the IPO with the offering price currently expected to be between $35 and $37 per ordinary share. It is aiming to raise up to $1.27 billion.
Goldman Sachs (GS), J.P. Morgan (JPM) and Morgan Stanley (MS) are acting as joint book-running managers for the proposed offering. Klarna will be listed under the ticker KLAR.
The company, which has been eyeing a New York listing for years, paused its plans in April due to choppy global markets after U.S. President Trump announced sweeping tariffs on major trading partners around the globe.
Buy now, pay later services let shoppers split purchases into smaller, interest-free installments over weeks or months, instead of paying upfront. There is a growing demand for these services, particularly among younger shoppers wanting to spread out the cost of buying a product or service.
Strong Figures
Indeed, the group’s second quarter revenue jumped 20% year-on-year to $824 million. Gross merchandise volume, or GMV, which is the total value of all transactions on its platform, climbed 19% to $31.2 billion.
In the United States, Klarna’s biggest growth market, GMV surged 37% thanks to partnerships with Apple Pay (AAPL), Google Pay (GOOGL) and DoorDash (DASH). However, in less good news for wannabe investors, its losses ballooned to $53 million, up from $18 million in the same quarter last year.
The company has also launched banking products and partnered with leading global brands such as fast-fashion retailers Zara and H&M, luxury-bag maker Coach and cosmetics giant Sephora.
The company had about 111 million active consumers and roughly 790,000 merchants in 26 countries as of June 30.
Despite economic and political volatility, Klarna has likely gained confidence from other recent and upcoming IPOs.
The year has already seen several large and successful IPOs from companies such as CoreWeave (CRWV) – see above chart – Circle Internet Group (CRCL) and Bullish (BLSH). However, analysts say that the IPO train is just getting started and that new stock issuance is popular again.
Several companies have filed with the U.S. Securities and Exchange Commission (SEC) to go public in coming months, including cryptocurrency exchange Gemini, blockchain lender Figure, and American Bitcoin, the Bitcoin (BTC) mining firm associated with U.S. President Donald Trump’s sons Eric and Don Jr.
What Other IPOs are on the Way?
We have compiled a list of IPO filings on our TipRanks IPO calendar.
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