Swedish fintech giant Klarna has officially announced the launch of its hotly anticipated initial public offering (IPO) on the New York Stock Exchange (NYSE), setting its ordinary share price between $35 and $37. The buy now, pay later (BNPL) provider aims to raise up to $1.27 billion at a $14 billion valuation.
The IPO comprises 34,311,274 ordinary shares in total, with Klarna itself offering 5,555,556 shares, while existing shareholders are selling 28,755,718 shares.
According to a Klarna statement: “The selling shareholders have granted the underwriters a 30-day option to purchase up to an additional 5,146,691 ordinary shares to cover over-allotments. Klarna will not receive any proceeds from the sale of ordinary shares by the selling shareholders.”
The IPO is being managed by a consortium of major financial institutions. Goldman Sachs, JP Morgan, and Morgan Stanley are acting as joint book-running managers, with Bank of America Securities, Citigroup, Deutsche Bank Securities, Société Générale, and UBS Investment Bank serving as bookrunners. Meanwhile, BNP Paribas, Keefe, Bruyette & Woods, Nordea, Rothschild & Co, Wedbush Securities, and Wolfe Nomura Alliance have been appointed as co-managers for the offering.
Klarna initially filed a Form F-1 registration statement with the US Securities and Exchange Commission for its New York offering in March. However, a month later, reports emerged that the BNPL firm had paused its IPO plans due to deteriorating market conditions following US President Donald Trump’s global trade tariffs announcement.
Klarna, set to list on the NYSE under the symbol “KLAR”, has recently completed two significant financial transactions in preparation for its public market debut. Within the last month, the company secured a structured financing facility with Santander, providing up to $1.6 billion in funding capacity. Klarna also inked a deal to sell $26 billion worth of BNPL loans to US student loan servicing company Nelnet Financial Services.
Source: https://www.fintechfutures.com/
