New updates have been reported about Klarna (PC:KLRNA)
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Klarna, the Swedish buy now, pay later (BNPL) company, is reigniting its initial public offering (IPO) ambitions, aiming to raise up to $1.27 billion. This move could value the company at approximately $14 billion. Klarna plans to list on the New York Stock Exchange under the ticker ‘KLAR,’ with the company and its shareholders collectively offering about 34.3 million shares priced between $35 and $37 each. Of these, Klarna will benefit directly from the sale of 5.6 million shares, while its shareholders will offload nearly 29 million shares.
Despite previous delays due to market conditions and a significant drop in valuation from over $45 billion in 2021 to $6.5 billion, Klarna’s recent financial performance has been promising. The company’s revenue surged by 54% to $823 million in the second quarter, driven by a 14% increase in gross merchandise value to $6.9 billion. Although Klarna remains unprofitable, it has reduced its net loss to $53 million, a 42% improvement from the previous year’s $92 million loss. The IPO is being managed by major financial institutions, including Goldman Sachs, JP Morgan, and Morgan Stanley, with additional support from BoFA Securities, Citigroup, Deutsche Bank, Societe Generale, and UBS. This strategic move is expected to bolster Klarna’s financial standing and expand its market presence.