Klarna Shares Begin Trading on NYSE, Valuing Company at $15.1 Billion
New york, NY – September 18, 2023 – Klarna, the Swedish “buy now, pay later” (BNPL) giant, commenced trading on the New York stock Exchange today following a accomplished initial public offering. Shares priced at $40,exceeding the anticipated $35-$37 range,valuing the company at $15.1 billion.
The IPO saw the sale of 34.3 million shares by Klarna and existing investors, raising $1.17 billion. Major shareholders participating in the sale included Silicon Valley venture capital firm Sequoia Capital and Danish billionaire Anders Holch Povlsen’s Heartland A/S. Klarna CEO Sebastian Siemiatkowski, holding approximately 7% of the company’s shares, did not sell any stock during the offering.
“Stock exchange is indeed an opportunity… primarily for new shareholders, 111 million consumers and others to participate in the journey aimed at the transformation of the financial service industry and the next generation of personal finance,” stated Klarna CFO Niclas Neglen.
Klarna’s debut on the NYSE marks the largest listing of a Swedish company in the United States as Spotify.Founded in 2005,Klarna pioneered the BNPL model,enabling customers to pay for purchases in installments. The company experienced rapid growth,particularly during the Covid-19 pandemic,but faced challenges in recent years,reporting losses as it expanded into new markets.Previously valued at $45.6 billion in 2021, Klarna’s valuation declined to $6.7 billion a year later amid rising inflation and interest rates.
While Klarna focuses on smaller purchases and short-term financing, its U.S. competitor Affirm concentrates on larger purchases with longer,interest-free financing options,currently holding a market value of $29 billion with shares up 45% this year. Klarna reported profitability for its first 14 years, but has recently focused on maximizing value from its existing 111 million user base rather than aggressive user acquisition, according to CEO Siemiatkowski, who told Reuters, “We are currently focusing on creating additional value for our existing user base than to increase the user base because the growth was very consistent.”
