Klarna's $1.27 Billion IPO Gambit: Will U.S. Investors Embrace the Pay-Later Pioneer?

Klarna, the Swedish fintech firm renowned for its “buy now, pay later” services, has launched its initial public offering (IPO) in the United States, aiming to raise up to $1.27 billion. The company plans to offer 34,311,274 ordinary shares at a price range of $35 to $37 per share, with 5.56 million of those shares offered by Klarna itself and the remaining 28.8 million from existing shareholders selling their stock. This IPO would value the company at up to $14 billion, according to calculations by CNBC [1]. The shares are set to trade on the New York Stock Exchange under the ticker symbol “KLAR” [1].

Goldman Sachs, JP Morgan, and Morgan Stanley are acting as joint book runners for the offering, with additional book runners including BofA Securities, Citigroup, and Deutsche Bank Securities. The underwriters also have the option to purchase up to an additional 5,146,691 shares to cover over-allotments within a 30-day period [2]. Notably, Klarna will not receive proceeds from the shares being sold by the existing shareholders, limiting the company’s direct financial benefit from the IPO [2].

Klarna’s financial performance in the most recent quarter highlights both growth and challenges. Revenue for the June quarter increased by 20% year-on-year to $823 million. However, the company reported a net loss of $53 million, an increase from the same period in the previous year [1]. The firm, established in 2005, has expanded beyond its original “buy now, pay later” model into other financial services such as debit cards and deposit accounts. Despite these efforts, the company’s valuation has declined significantly from a high of $45.6 billion in a 2021 funding round led by SoftBank to $6.7 billion as of 2022, attributed to adverse macroeconomic conditions, including the Russia-Ukraine conflict [1].

The decision to list in the U.S. comes amid broader macroeconomic uncertainty and a shift in global IPO dynamics. Klarna had initially aimed for a public listing earlier this year but delayed the process due to concerns over U.S. President Donald Trump’s proposed reciprocal tariffs on multiple countries in April [1]. The firm’s IPO now aligns with a growing wave of tech and fintech firms seeking capital in the U.S. equity markets, despite ongoing volatility and investor caution.

The IPO filing with the U.S. Securities and Exchange Commission (SEC) has not yet become effective, and the offering remains subject to market conditions and regulatory approvals. Prospective investors are advised to review the preliminary prospectus available on the SEC’s EDGAR database or through the lead underwriters [2]. The offering underscores the continued interest in digital financial services and the resilience of fintech firms in navigating a challenging economic landscape.

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[1] Klarna aims to raise up to $1.27 billion in U.S. IPO (https://www.cnbc.com/2025/09/02/klarna-ipo-in-us-to-raise-up-to-1point27-billion-in.html)

[2] Klarna Announces Launch of its Initial Public Offering (https://www.klarna.com/international/press/klarna-announces-launch-of-its-initial-public-offering/)