Klarna, the Swedish fintech giant known for its "buy now, pay later" (BNPL) services, has officially filed its IPO prospectus, setting the stage for a listing on the New York Stock Exchange under the ticker symbol KLAR. While the number of shares and the expected price range remain undisclosed, the move underscores Klarna’s ambition to reestablish itself as a major player in the global financial landscape.
Klarna’s decision to go public in the U.S. rather than in Europe marks another setback for European stock exchanges, which have struggled to retain homegrown tech champions. CEO Sebastian Siemiatkowski has long hinted at a U.S. listing, citing advantages such as greater market visibility and a more favorable regulatory environment.
The IPO filing comes after Klarna’s tumultuous journey over the past few years. During the pandemic, the company reached a staggering $46 billion valuation in a SoftBank-led funding round. However, as market conditions shifted, Klarna faced an 85% valuation drop in 2022, bottoming out at $6.7 billion. Now, with its return to profitability in 2023 and a reported valuation of around $15 billion, the company is looking to regain investor confidence.
Klarna’s revenue surged 24% in 2023, reaching $2.8 billion. Despite reporting an operating loss of $121 million, its adjusted operating profit hit $181 million — a sharp turnaround from the previous year's $49 million loss. These figures suggest that Klarna’s restructuring efforts and cost-cutting measures have begun to pay off.
Klarna’s move comes at a time when tech companies are cautiously returning to the public markets. The IPO landscape had slowed significantly since late 2021 due to rising interest rates and inflation concerns. However, recent listings — including CoreWeave, ServiceTitan, and Reddit — signal renewed investor appetite for high-growth tech firms.
As Klarna prepares to go public, market watchers will be keen to see how investors respond to the latest BNPL offering on Wall Street. Will Klarna’s IPO mark the beginning of a new chapter in its storied journey?
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