Klarna revives IPO plans, aims to raise $1.27B | TechCrunch

"Swedish buy-now, pay-later (BNPL) startup Klarna and its shareholders are reviving its initial public offering, hoping to raise as much as $1.27 billion in a listing that would value the company at up to $14 billion. The company and some of its shareholders are together selling approximately 34.3 million shares between $35 and $37 each, the company said in an update to its registration statement on Tuesday. Klarna would receive proceeds from about 5.6 million shares, while its shareholders are offloading nearly 29 million shares."

"Klarna has long been expected to go public thanks to the massive success of its BNPL lending model in the wake of the post-pandemic boom: Six years after launching in the U.S., the company hit a valuation of more than $45 billion in 2021. However, the company has been putting off its IPO plans as the market turned at the end of the ZIRP era, its price tag declining by 85% to $6.5 billion when the 2021 venture capital valuation bubble burst."

Klarna and some shareholders are offering about 34.3 million shares at $35–$37 each to raise up to $1.27 billion, valuing the company as high as $14 billion. The company would receive proceeds from roughly 5.6 million shares while shareholders would sell nearly 29 million shares. Klarna plans to list on the New York Stock Exchange under the ticker KLAR. The company reached a valuation above $45 billion in 2021 before falling to $6.5 billion. Revenue rose 54% to $823 million in Q2 and gross merchandise value increased 14% to $6.9 billion. Net loss narrowed to $53 million. Major banks are leading the offering.

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