Swedish buy now pay later company Klarna is moving ahead with its long anticipated initial public offering, aiming to raise as much as 1.27 billion dollars in a listing that could value the firm at up to 14 billion dollars.
In an update to its registration statement on Tuesday, Klarna said it and its shareholders will sell about 34.3 million shares, priced between 35 and 37 dollars each. Of these, Klarna itself will receive proceeds from around 5.6 million shares, while nearly 29 million shares will come from its shareholders. The company plans to debut on the New York Stock Exchange under the ticker KLAR.
Klarna has been expected to go public for years following the success of its buy now pay later model, particularly during the post pandemic boom. The company was valued at more than 45 billion dollars in 2021 after just six years in the United States. However, the market downturn that followed the end of the zero interest rate era saw its valuation drop by 85 percent to 6.5 billion dollars when the venture capital bubble burst.
Despite past challenges, Klarna has shown strong recent growth. Its second quarter revenue rose 54 percent year on year to 823 million dollars, driven by a 14 percent increase in gross merchandise value to 6.9 billion dollars. The company is still reporting losses, though these are narrowing, with net loss of 53 million dollars compared to 92 million dollars a year earlier, a 42 percent improvement.
The offering is being managed by Goldman Sachs, JP Morgan, and Morgan Stanley, with additional participation from BoFA Securities, Citigroup, Deutsche Bank, Societe Generale, UBS, and other banks.
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