Klarna's US IPO Filing

Klarna's US IPO Filing

theglobeandmail.com

Klarna's US IPO Filing

Klarna, a Swedish BNPL firm, files for a US IPO, marking a significant event for the European tech scene.

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What is Klarna's current plan?
Klarna, a buy now, pay later (BNPL) company, is going public for a second time, filing paperwork with the SEC for an initial public offering (IPO). This will be one of the largest European company IPOs next year, potentially surpassing all but Revolut.
Why is Klarna choosing a US listing?
Klarna's IPO will be significant, marking the largest Swedish company to list on a U.S. exchange since Spotify in 2018. The company is targeting a U.S. listing due to its focus on U.S. expansion and a more lenient environment towards profitability for tech companies.
How has Klarna's valuation changed recently?
Klarna's valuation has fluctuated dramatically. After reaching $46.5 billion in 2021, it dropped significantly, and the current IPO valuation is undetermined. This contrasts with earlier reports suggesting around a $20 billion valuation.
What is Klarna's recent financial performance?
Klarna reported a first-half adjusted profit of 673 million Swedish crowns ($61.74 million), a significant improvement from a loss the previous year, driven by cost-cutting measures and AI implementation. Revenue also rose 27% year over year.
What factors influenced Klarna's decision to go public in the US?
Klarna's decision to pursue a U.S. IPO is partly driven by its expansion efforts in the American market. The company also anticipates benefitting from less stringent profitability requirements for tech companies in the U.S. market.