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Klarna Prices IPO at $40, Valuing Company at $15 Billion

Prime Highlights:

  • Klarna priced its IPO at $40 per share, above the expected range of $35–$37, showing strong investor interest.
  • The IPO raised $1.37 billion, with most of the funds going to existing shareholders and a smaller portion to the company.

Key Facts:

  • Klarna’s total valuation from the IPO is around $15 billion.
  • Revenue grew 20% year-over-year to $823 million, though the company reported a net loss of $53 million in the second quarter.

Key Background:

Swedish lender Klarna will sell its shares at $40 each, above the expected $35–$37. This puts the company’s value at around $15 billion and shows strong interest from investors.

The IPO raised a total of $1.37 billion, with $1.17 billion going to existing shareholders looking to exit a portion of their long-held positions, and $200 million directed to Klarna itself. KLAR will be listed on the New York Stock Exchange, and the ticker symbol will be KLAR.

The financing products of Klarna are short-term and without interest, thus it has become famous because consumers can afford to use the money they spend on purchases over a period without interest.

In recent months, the company has been rebranding as a digital retail bank, extending its service beyond the traditional services of BNPL. Its public listing will serve as a test of Wall Street’s enthusiasm for this strategic shift.

Despite the positive market response to the IPO, Klarna reported a net loss of $53 million in the second quarter, up from $18 million during the same period last year. Klarna experienced an increase in the level of transactions as revenue increased 20 percent over the previous year to reach $823 million. The company makes money through a fee charged to merchants who use its payment tools, as well as through interest and late fees charged on loans with a longer term.

Tech IPOs have been of particular interest to investors lately, and such firms as Figma and Circle have been successful in the stock market.

Klarna, which competes with other BNPL platforms such as Affirm, initially planned to go public earlier this year but postponed its IPO following the U.S. government’s announcement of reciprocal tariffs on multiple countries.

Experts say Klarna’s successful IPO shows that investors are confident in the buy now, pay later (BNPL) market. With its shares now on the stock market, Klarna plans to use the money raised to grow its business and continue moving toward becoming a full digital retail bank.