Swedish BNPL giant Klarna has officially submitted its application to the Securities and Exchange Commission for a listing of its ordinary shares on the New York Stock Exchange under the ticker symbol ‘KLAR’.
Goldman Sachs & Co. LLC, J.P. Morgan, and Morgan Stanley are acting as joint book-running managers for the offering. BofA Securities, Citigroup, Deutsche Bank Securities, Société Générale, and UBS Investment Bank will serve as bookrunners, while BNP Paribas, Keefe, Bruyette & Woods, A Stifel Company, Nordea Bank Abp, Rothschild & Co, Wedbush Securities, and Wolfe | Nomura Alliance will function as co-managers.
Key figures from the prospectus include:
– $105 billion in Gross Merchandise Volume (GMV)
– $2.8 billion in annual revenue
– $21 million in net profit, marking the company’s first profitable year
– 93 million active consumers globally
– 675,000 merchants on the platform
The specific number of shares to be offered and the pricing range for the offering have yet to be determined, but analysts anticipate an amount around $1 billion with a market valuation of $15 billion. This valuation is more than double the $6.7 billion reported during Klarna’s funding round in 2022, although it remains significantly lower than the peak valuation of $46 billion in 2021.
Nalin Patel, PitchBook’s director of EMEA Private Capital Research, believes Klarna’s debut will serve as a gauge for investor interest in fintech companies. “The company’s return to profitability and revenue growth are positive indicators; however, the reduced valuation compared to its 2021 peak reflects a cautious perspective on venture capital valuations in today’s economic environment,” he stated. “Klarna’s performance could influence market sentiment for other fintech firms considering exits and public listings.”
Klarna’s expansion efforts in the U.S. received a significant boost with its acquisition of Walmart’s business from rival Affirm. Klarna will be integrated with Walmart’s fintech startup OnePay to facilitate underwriting decisions for loans ranging from three to 36 months, with annual interest rates between 10% and 36%.
“This is a game changer,” said Sebastian Siemiatkowski, co-founder and CEO of Klarna. “Millions of people in the U.S. shop at Walmart every day — and now they can shop smarter with OnePay installment loans powered by Klarna. Being chosen as the exclusive installment loans partner at Walmart in the U.S. is a huge vote of confidence as we pursue our goal of being available everywhere for everything. We look forward to helping redefine the checkout experience at the world’s largest retailer — both online and in stores.”