Klarna is synonymous with the "buy now, wage later" inclination of making a acquisition and deferring outgo until the extremity of the period oregon paying implicit interest-free monthly installments.
Nikolas Kokovlis | Nurphoto | Getty Images
Online lender Klarna priced its IPO astatine $40 per stock connected Tuesday, supra its expected range, successful a woody that values the Swedish institution astatine astir $15 billion.
Klarna, known for its fashionable bargain now, wage aboriginal products, said it raised $1.37 cardinal for the institution and existing shareholders, who are looking to exit a information of their long-held positions. The institution volition database its shares connected the New York Stock Exchange nether the awesome "KLAR.
The nationalist markets person shown an accrued appetite for tech IPOs of late, with companies similar crypto steadfast Circle and bundle vendor Figma soaring successful their highly anticipated debuts. Klarna, which competes with Affirm, was initially aiming to spell nationalist earlier this year, but enactment its plans connected clasp owed to U.S. President Donald Trump's April announcement of reciprocal tariffs connected dozens of countries.
Widely known for its short-term, interest-free financing products, Klarna has attempted successful caller months to rebrand itself arsenic much of a integer retail bank. Its IPO volition beryllium a test of Wall Street's excitement astir the absorption of its business.
Klarna disclosed a nett nonaccomplishment of $53 cardinal successful the 2nd quarter, widening from $18 cardinal successful the aforesaid play a twelvemonth go. Revenue climbed 20% from a twelvemonth earlier to $823 cardinal implicit the stretch.
Klarna makes wealth by charging merchants that usage its online outgo tools a tiny interest connected each transaction. It besides generates income from involvement connected longer-term financing products and precocious fees.
Of the full magnitude being raised, $1.17 cardinal is going to shareholders with conscionable $200 cardinal going to the company.
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