Klarna's $1.37 Billion US IPO Values Company at $15.1 Billion
Klarna Group Plc completed its IPO on the US stock market, raising $1.37 billion. The company and its shareholders sold 34.3 million shares at $40 each, above the initial $35-$37 range. The offering was over 20 times oversubscribed, valuing Klarna at $15.1 billion. Klarna offered 5.6 million shares, while existing shareholders sold 28.8 million. The company reported revenue of $1.52 billion and a net loss of $153 million for the first half of the year. Klarna will trade on the NYSE under 'KLAR'.
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Klarna Group Plc, the Swedish buy-now-pay-later giant, has successfully completed its initial public offering (IPO) on the US stock market, raising $1.37 billion in a heavily oversubscribed offering. The company, along with its shareholders, sold 34.3 million shares at $40 per share, exceeding the initially marketed range of $35-$37.
Strong Investor Demand
The IPO garnered significant interest from investors, with the offering being more than 20 times oversubscribed. This robust demand has resulted in Klarna achieving a market valuation of approximately $15.1 billion. While this valuation marks a substantial recovery from the company's 2022 private funding round, which valued it at $6.7 billion, it still falls short of the $45.6 billion valuation achieved during SoftBank's investment in 2021.
Share Allocation
Of the total shares sold:
- Klarna itself offered 5.6 million shares
- Existing shareholders, including co-founder Victor Jacobsson, Sequoia Capital, and Anders Holch Povlsen's Heartland A/S, sold 28.8 million shares
Company Overview and Strategy
Klarna, founded in Stockholm, is primarily known for its buy-now-pay-later services. Under the leadership of CEO Sebastian Siemiatkowski, the company is now expanding its offerings into digital banking, signaling a broader fintech strategy.
Recent Financial Performance
For the six months ended June 30, Klarna reported:
| Item | Amount | Comparison |
|---|---|---|
| Revenue | $1.52 billion | Up from $1.33 billion in prior year |
| Net loss | $153 million | Increased from $38 million loss in prior year |
Trading Information
Klarna is set to begin trading on the New York Stock Exchange under the ticker symbol 'KLAR'.
This successful IPO marks a significant milestone for Klarna, providing it with substantial capital to fuel its growth and expansion plans in the competitive fintech landscape. The strong investor interest, despite the company's recent losses, suggests confidence in Klarna's business model and future prospects in the evolving digital payment and banking sector.
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