As we speak, one of the crucial carefully watched fintech preliminary public choices of the yr takes place. Shares of the purchase now, pay later (BNPL) juggernaut Klarna Group make their inventory market debut. Right here’s every thing you’ll want to find out about Klarna’s IPO.
What’s Klarna?
Klarna Group is a Swedish fintech firm based in 2005. It’s headquartered in Stockholm.
Klarna is without doubt one of the largest gamers within the purchase now, pay later (BNPL) area, which has revolutionized the patron monetary panorama over the previous few years.
BNPL permits customers to purchase objects—every thing from computer systems to burritos—in installments, as an alternative of paying a single whole charge upfront. The installments are repaid over a interval of weeks or months and are interest-free, supplied funds are made on time.
However whereas BNPL companies permit customers to fund purchases they might not in any other case be capable of afford upfront, the financing possibility has been met with a lot criticism, one of many greatest ones being that BNPL is usually a debt entice to customers, significantly youthful Gen Z ones who don’t have a whole lot of expertise in monetary planning or literacy.
Klarna by the numbers
In accordance with Klarna’s Type F-1 submitting with the U.S. Securities and Change Fee (SEC), the corporate’s key metrics embrace:
- Gross merchandise quantity (GMV) of $105 billion in 2024 (up from a GVM of $53 billion in 2020).
- Operations in 26 international markets.
- 93 million energetic customers.
- A community of 675,000 retailers.
- $2.8 billion in whole income in 2024 (up from $2.2 billion in whole income in 2023).
- Web revenue of $21 million in 2024 (up from a internet lack of $244 million in 2023).
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When is Klarna’s IPO?
Klarna’s IPO has been a very long time coming. The corporate introduced its intention to make its inventory market debut in March of this yr. However shortly after, President Trump’s Liberation Day tariffs wreaked havoc on markets, inflicting Klarna to postpone its public providing plans.
However earlier this month, Klarna started saying particulars of its postponed IPO, suggesting a date was close to. Klarna priced its shares on Tuesday and is anticipated to record immediately: Wednesday, September 10.
What’s Klarna’s inventory ticker?
Klarna’s shares will commerce below the ticker “KLAR.”
What exhcnage will Klarna commerce on?
Klarna shares will commerce on the New York Inventory Change (NYSE).
What’s the IPO share value of KLAR?
Klarna’s shares had been priced at $40 every. That’s nicely above a goal value vary of between $35 and $37 that the corporate initially forecast.
What number of KLAR shares can be found in its IPO?
In whole, there are 34,311,274 abnormal shares of KLAR accessible within the IPO. Nevertheless, a majority of these shares should not being supplied by the corporate itself.
As a matter of reality, simply 5 million abnormal shares are being offered by Klarna. The remaining 29.3 million shares are being offered by a number of the firm’s current shareholders.
How a lot will Klarna increase in its IPO?
Klarna’s IPO raised $1.37 billion, in line with Reuters. Nevertheless, Klarna itself won’t profit from that whole sum as the corporate’s current non-public shareholders offered a majority of the shares on supply.
As Klarna acknowledged in a press launch, “Klarna won’t obtain any proceeds from the sale of abnormal shares by the promoting shareholders.”
How a lot is Klarna price?
Klarna is now price round $15.11 billion after its IPO value of $40 per share, in line with Reuters. Whereas that valuation is nothing to sneeze at, it’s nonetheless nicely beneath Klarna’s estimated valuation of greater than $45 billion again in 2021.
Niklas Kammer, an analyst for Morningstar, sees a 12.5% upside to Klarna’s IPO value, in line with a latest word.
“We consider the supply value of USD 40 per share undervalues the substantial progress we anticipate these agreements to drive,” Kammer wrote, citing agreements with cost service suppliers that may increase Klarna’s attain. “Development is what it’s all about for Klarna. Whereas its platform is at present simply breaking even, beginning to eke out a marginal working revenue, the corporate is poised for an enormous shift.”
Klarna is the newest high-profile tech IPO in 2025
Whereas Klarna’s inventory market debut will little question be carefully watched by business insiders and traders immediately, the tech firm is not at all the one high-profile one to go public this yr.
Different main tech IPOs in 2025 have included Chime, Circle, Figma, eToro, and Bullish.
In actual fact, Klarna isn’t even the one tech-focused firm going public this week; others embrace Through Transportation, Legence Corp, and Gemini Area Station.
But regardless of the relative success that some tech IPOs have loved this yr, the worldwide tech IPO scene in 2025 is at present a far cry from the busy panorama a couple of years in the past.
Current information from CB Insights reveals that within the second quarter of 2025, international tech IPOs generated $6.3 billion in proceeds. However that pales compared to the $34.9 billion that tech IPOs generated in the identical quarter of 2021. That additionally occurs to be the identical time that Klarna had its sky-high valuation of over $45 billion—3 times increased than now.
Disclosure: Quick Firm is owned by Morningstar founder Joe Mansueto.
