Buy now, pay later lender Klarna has filed to hold an initial public offering (IPO) on the New York Stock Exchange
The Swedish company’s stock will trade under the ticker symbol “KLAR.”
Klarna hasn’t disclosed the number of shares to be offered or the price range. However, the start-up company aims to raise at least $1 billion U.S. at a valuation of $15 billion U.S.
The decision to go public in the U.S. is seen as a blow to European stock exchanges, which have struggled to retain domestic technology firms.
Klarna’s IPO is also a bullish sign for Wall Street following a historic slowdown in new offerings since the Covid-19 pandemic.
Klarna’s valuation has taken a hit in recent years.
Once valued at $46 billion U.S., Klarna saw its valuation decline by 85% in 2022, plummeting to $6.70 billion U.S. in its most recent fundraising round.
However, analysts now estimate the company’s valuation to be about $15 billion U.S., bolstered by it achieving profitability.
Klarna reported that its revenue last year increased 24% to $2.80 billion U.S. The company’s operating profit was $181 million U.S., swinging from a loss of -$49 million U.S. a year earlier.
Founded in 2005, Klarna is best known for its buy now, pay later loans, a service that allows consumers to split purchases into installments.
The company competes against Affirm Holdings (AFRM) and Block (XYZ). An exact date for Klarna’s IPO hasn’t been announced yet.
