Klarna to raise USD1.3b in New York IPO
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The news: Buy now, pay later firm Klarna has announced plans for its second attempt at an initial public offering on the New York Stock Exchange, after the Swedish fintech pushed back initial listing plans in April due to President Trump’s trade war.
The numbers: The company is aiming to raise up to USD1.27 billion ($1.95 billion), with shares priced at between USD35 and USD37. According to a source cited by the Financial Times, the range implies a valuation of between USD12.5 billion and USD14 billion.
In a press release published on Tuesday, Klarna said it plans to sell 5.6 million shares in the offering and selling holders are set to offer 28.8 million shares.
At its peak in 2021, Klarna raised private capital at a valuation of USD4 billion, plummeting to less than USD7 billion within 12 months.
The context: Klarna is not the only fintech which pushed back plans to float as Trump’s trade war roiled markets earlier this year, with EToro and Chime since moving ahead with their listings.
Despite being a BNPL player first and foremost, the company has signalled its intention to diversify away from the sector to become more akin to a digital bank. The company recently launched products including debit cards and plans to launch a mobile phone service in the US alongside AT&T.
Goldman Sachs, JP Morgan and Morgan Stanley are acting as joint book-running managers for the proposed offering, while BofA Securities, Citigroup, Deutsche Bank Securities, Societe Generale and UBS Investment Bank are acting as bookrunners.
The sources: Klarna press release, FT, Bloomberg
