Klarna Shares Begin Trading After โHighly Anticipatedโ IPO
NEW YORK – Klarna,โข the โSwedish “buy now, payโข later” (BNPL) giant,โค commencedโ trading on Wall Street today, marking one of the year’s largest โคinitialโ publicโ offerings (IPOs) and โขperhaps signaling โขa resurgence in the fintech sector. Sharesโค are priced at $40, exceeding initial guidance of around $35, valuing the companyโค atโข $15 billion.
The IPO sees Klarna raising โค$1.37 billion, with subscriptions overbooked by as much as 25 times, demonstrating strong โinvestor โขdemand. The company, tradingโค under the ticker symbol KLAR, has experiencedโข a volatile valuation history, peaking at $45โค billion in 2021 before falling to under $7โค billion โขinโฃ 2022. This debutโ represents a significant recovery and a strategic โshift for the BNPL leader.
Klarna is aiming toโข diversifyโ beyond โits core โ”buy now,pay later” model,expanding โฃinto debit cards,savings accounts,and loans,and even pursuing a US bankingโ license.This expansion isโ intended to leverage the company’s strong brand recognition โin a competitive market.
Despite the positive momentum, profitability remains a key concern for Klarna, โขalongsideโ increased regulatory scrutiny surrounding BNPL services. Analysts โwill be โclosely monitoring the company’s performance to determine if this IPOโ truly indicates a sustained recovery for the fintech industry.
