Klarna set for US IPO in snub to London markets
Swedish fintech Klarna is looking to raise a minimum of $1bn (£777m) in a US initial public offering (IPO), sources told Bloomberg.
Klarna’s US filing, which could come as soon as next week, will see the firm target a valuation of more than $15bn in the New York Stock Exchange, according to people familiar with the matter.
Communication is understood to be ongoing with the payments business aiming to price the IPO in early April.
Specific details of the listing plan or timings are subject to change, Bloomberg sources said.
Klarna submitted a confidential IPO filing with the US Securities and Exchange Commission (SEC), according to a statement in November.
It is reported the firm is working with up to 15 banks on the listing including industry giants JP Morgan, Goldman Sachs and Morgan Stanley.
A US listing will deal yet another blow to the embattled London Stock Exchange (LSE). Last year, 88 companies left the LSE, including tech darling Darktrace and Paddy Power-owner Flutter – while just 18 firms joined it through new listings.
The figures, first reported by the Financial Times, mark the most significant net outflow of firms from the market since the financial crisis in 2009.
Klarna maintains a strong presence in the UK, with over 18m customers and 31,000 merchants, which had previously led to hopes of a blockbuster London IPO.
The company’s decision will spark fears over the fate of its fintech counterparts Monzo and Revolut, with the CEO of the latter saying in December that the UK market cannot compete with the US in its current form.
Klarna offers a buy now, pay later service, which allows consumers to split purchases into interest-free payments, or ones they can choose to pay over time.
The firm’s valuations have wavered over the past few years, after a 2021 funding round saw the company reach a valuation of $45.6bn (£35.4bn), but decline in the ensuing round to $6.7bn (£5.2bn).
Several big outlets support Klarna payments, including Argos, Currys, JD Sports and since last year, Uber Eats.
Sebastian Siemiatkowski, Niklas Adalberth and Victor Jacobsson founded the company in 2005 after participating in the Stockholm School of Economics annual entrepreneurship competition.