Klarna, Sweden's leading fintech company, is at last making serious of its IPO plans and plans an IPO on the US NYSE stock exchange, including the sale and issuance of 34 million shares. In the IPO, Klarna is valued at close to $14 billion.
Klarna is offering a total of 34.3 million shares in the IPO on the NYSE, of which 5.5 million will be issued by the company itself and 28.8 million will be sold by existing shareholders. The price per share is expected to be between $35 and $37, valuing the company at around $13—14 billion. This is substantially lower than previous estimates.
Among those selling shares are big names such as Denmark's richest man Anders Holch Povlsen and the investment companies Silver Lake and Sequoia Capital. Klarna is looking to recoup roughly $1 billion to support further growth.
Since its establishment in Stockholm in 2005, Klarna has grown to become a global player, particularly known for its “buy now, pay later” model that has revolutionized e-commerce. Now the company is opening up for both existing investors and new market players to join the company's next phase as a listed company.
The sale consists of shares both from Klarna itself and from existing sellers, the latter of which does not add new capital to the company, but allows for ownership disposal. To meet any additional demand, the selling shareholders have granted the facilitators an option to purchase an additional approximately 5 million shares.
Facilitating the IPO is being led by heavyweight financial institutions such as Goldman Sachs, J.P. Morgan and Morgan Stanley, ensuring broad and solid ownership within the financial markets.
Klarna enters the IPO at a time of growing interest in digital finance solutions and fintech. In recent years, the company has expanded its service offering from payment deferments to banking services such as debit cards and cashback solutions. With its position on the NYSE, Klarna gains a solid springboard for further growth in the U.S. and global markets.
The IPO is currently subject to market conditions and regulatory approvals, but nevertheless marks a major step for the Swedish fintech pioneer who is now celebrating 20 years in the industry and a user base of over 111 million active customers worldwide.
