Swedish buy now, pay later startup Klarna is moving forward with long-awaited plans to go public, aiming to raise up to $1.27 billion through a New York Stock Exchange listing.
The company and its shareholders are offering about 34.3 million shares priced between $35 and $37 each, according to an updated filing on Tuesday. Klarna itself will receive proceeds from roughly 5.6 million shares, while existing shareholders plan to sell close to 29 million shares. Shares will trade under the ticker “KLAR.”
Klarna’s IPO has been widely anticipated following the success of its BNPL model, which surged in popularity after the pandemic. At its peak in 2021, Klarna was valued at over $45 billion. But with the end of ultra-low interest rates and a sharp downturn in venture capital valuations, its valuation plunged by 85% to $6.5 billion. The revived IPO now positions Klarna at up to $14 billion.
Despite past challenges, the company is showing strong growth. Klarna’s Q2 revenue jumped 54% year-over-year to $823 million, driven by a 14% increase in gross merchandise value to $6.9 billion. Losses remain, but net loss narrowed to $53 million compared to $92 million last year.
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The offering is being led by Goldman Sachs, JP Morgan, and Morgan Stanley, alongside Bank of America, Citigroup, Deutsche Bank, Societe Generale, UBS, and others.
