Klarna Shares Begin Trading After Highly Anticipated IPO
NEW YORK – Klarna, the Swedish “buy now, pay later” (BNPL) giant, commenced trading on Wall Street today, marking one of the year’s largest initial public offerings (IPOs) and perhaps signaling a resurgence in the fintech sector. Shares are priced at $40, exceeding initial guidance of around $35, valuing the company at $15 billion.
The IPO sees Klarna raising $1.37 billion, with subscriptions overbooked by as much as 25 times, demonstrating strong investor demand. The company, trading under the ticker symbol KLAR, has experienced a volatile valuation history, peaking at $45 billion in 2021 before falling to under $7 billion in 2022. This debut represents a significant recovery and a strategic shift for the BNPL leader.
Klarna is aiming to diversify beyond its core ”buy now,pay later” model,expanding into debit cards,savings accounts,and loans,and even pursuing a US banking license.This expansion is intended to leverage the company’s strong brand recognition in a competitive market.
Despite the positive momentum, profitability remains a key concern for Klarna, alongside increased regulatory scrutiny surrounding BNPL services. Analysts will be closely monitoring the company’s performance to determine if this IPO truly indicates a sustained recovery for the fintech industry.
