Klarna to raise up to $1.27bn in revived New York IPO plan

2nd Sep 2025 12:47

(Sharecast News) - Klarna revived its long-delayed plan for a New York initial public offering on Tuesday, aiming to raise as much as $1.27bn at a valuation of up to $14bn as investor appetite for technology stocks shows signs of recovery.

The Swedish buy now, pay later (BNPL) provider said it would sell 34.3 million shares, priced between $35 and $37 each, after shelving an earlier listing in April when market volatility followed fresh US trade tariffs.

It marked a key moment for a company that was valued at $46bn in 2021 before falling below $7bn last year as higher interest rates and concerns over the BNPL model weighed on sentiment.

Founded in 2005, Klarna became one of Europe's highest-profile fintechs by letting shoppers split purchases into interest-free instalments.

It boasts about 111 million active users and nearly 800,000 merchant partners worldwide, including brands such as Zara, H&M and Sephora.

The company had broadened its offerings in recent months, launching debit cards in Europe and the US, applying for financial licences and signalling interest in a US banking licence after going public.

Analysts said Klarna's IPO would be a bellwether for high-growth fintechs following a run of strong debuts from companies such as software group Figma and crypto exchange Bullish.

A successful listing could signal renewed confidence in digital finance after years of market turbulence, while a weak reception might underline concerns about regulation, profitability and consumer credit risks.

The company, backed by investors including Sequoia Capital and Heartland A/S, would trade on the New York Stock Exchange under the ticker 'KLAR', with Goldman Sachs, JPMorgan and Morgan Stanley leading the underwriting.

Reporting by Josh White for Sharecast.com.