Klarna Revives IPO Plans, Aiming to Raise $1.27 Billion

Swedish buy-now, pay-later (BNPL) startup Klarna is reigniting its initial public offering plans in collaboration with its shareholders, seeking to raise as much as $1.27 billion in a listing that could potentially value the company at up to $14 billion.

In an update to its registration statement released on Tuesday, the company revealed that it and certain shareholders are offering approximately 34.3 million shares at a price range of $35 to $37 per share. Klarna anticipates receiving proceeds from around 5.6 million shares, while shareholders will be offloading nearly 29 million shares.

The company plans to list its shares on the New York Stock Exchange under the ticker symbol “KLAR”.

Anticipation has grown for Klarna’s public debut, particularly given the notable success of its BNPL lending model after the post-pandemic surge: Six years post its U.S. launch, the company achieved a valuation surpassing $45 billion in 2021. However, it postponed its IPO plans as market conditions changed following the end of a low-interest-rate period, resulting in a valuation decrease of 85% to $6.5 billion after the 2021 venture capital bubble burst.

Despite this setback, Klarna has demonstrated robust growth: its revenue surged by 54% to $823 million in the second quarter compared to the same period last year, fueled by a 14% increase in gross merchandise value to $6.9 billion. While the company is still operating at a loss, it reported a net loss of $53 million, which is 42% lower than the net loss of $92 million from the previous year.

Goldman Sachs, JP Morgan, and Morgan Stanley are leading the offering, with Bank of America Securities, Citigroup, Deutsche Bank, Societe Generale, UBS, and several other banks participating in the deal.