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Swedish buy-now, pay-later (BNPL) startup Klarna and its shareholders are reviving its initial public offering, hoping to raise as much as $1.27 billion in a listing that would value the company at up to $14 billion.<\/p>\n
The company and some of its shareholders are together selling approximately 34.3 million shares between $35 and $37 each, the company said in an update<\/a> to its registration statement on Tuesday. Klarna would receive proceeds from about 5.6 million shares, while its shareholders are offloading nearly 29 million shares.<\/p>\n The company plans to list its shares on the New York Stock Exchange under the ticker \u201cKLAR\u201d.<\/p>\n Klarna has long been expected to go public thanks to the massive success of its BNPL lending model in the wake of the post-pandemic boom: Six years after launching in the U.S.<\/a>, the company hit a valuation of more than $45 billion<\/a> in 2021. However, the company has been putting off its IPO plans as the market turned at the end of the ZIRP era, its price tag declining by 85% to $6.5 billion<\/a> when the 2021 venture capital valuation bubble burst.\u00a0<\/p>\n Still, Klarna\u2019s been growing well: its revenue rose 54% to $823 million in the second quarter compared to a year earlier, thanks to a 14% increase in its gross merchandise value to $6.9 billion. The company\u2019s bottom line is still in the red with net loss coming in at $53 million, though that\u2019s 42% less than its net loss of $92 million a year earlier.<\/p>\n Goldman Sachs, JP Morgan, and Morgan Stanley are running the offering, and BoFA Securities, Citigroup, Deutsche Bank, Societe Generale, UBS, and several other banks are also working on the deal. <\/p>\n<\/div>\n