Klarna Soars 30% in NYSE Debut, Valued at $19.65 Billion

Klarna's shares debuted in New York, rising 30% to a market value of around $19.65 billion. The Swedish fintech sold 34.3 million shares for $40 apiece, exceeding its expectations. Analysts believe the successful IPO could encourage other fintechs to go public this fall, but warn that the market's appetite could fade quickly if weaker deals follow.

Swedish fintech giant Klarna made a strong debut on the New York Stock Exchange (NYSE) on Wednesday, with its shares jumping 30% to a market value of around $19.65 billion. The company sold 34.3 million shares at $40 apiece, exceeding its expectations and raising $1.37 billion Klarna IPO debut: Stock jumps 30% on NYSE listing; Swedish BNPL firm eyes US market growth^[1].

The IPO, which was underwritten by JPMorgan Chase and Goldman Sachs, positions Klarna as a major player in the evolving digital payments sector. The company, which provides a range of payment solutions for online shopping apart from its popular "buy now, pay later" (BNPL) service, will start trading under the symbol "KLAR" Fintech Firm Klarna raises $1.37B in US IPO, Sets Stage for Market Debut^[2].

Klarna's CEO and co-founder Sebastian Siemiatkowski expressed optimism about the US market, stating, "It’s the largest consumer market in the world, and it’s the biggest credit card market in the world. It’s a tremendous opportunity, from our perspective" Klarna IPO debut: Stock jumps 30% on NYSE listing; Swedish BNPL firm eyes US market growth^[1].

The successful IPO comes amidst a wave of fintech offerings, with the FinTech IPO Index showing a strong year-to-date (YTD) performance. The index was up 118% YTD as of Sept. 5, fueled by BNPL player Affirm and Opendoor Fintech Firm Klarna raises $1.37B in US IPO, Sets Stage for Market Debut^[2].

However, analysts caution that while the successful IPO could encourage other fintechs to go public this fall, the market's appetite could fade quickly if weaker deals follow. Klarna's IPO, priced at $40, was well-received by investors, but the market's response to future offerings will be closely watched.

Klarna's IPO follows a series of fintech offerings, including Circle, Figma, and Bullish, which have revived the broader IPO market. The company's pricing would further foster confidence among peers on the Fintech IPO Index Fintech Firm Klarna raises $1.37B in US IPO, Sets Stage for Market Debut^[2].

The successful IPO also highlights the growing interest in the BNPL market, which is competing with traditional credit card issuers. Klarna's "pay-in-4" plan, which allows customers to split purchases into four installments over six weeks, has attracted over 111 million users worldwide Klarna IPO debut: Stock jumps 30% on NYSE listing; Swedish BNPL firm eyes US market growth^[1].

In the second quarter, Klarna reported revenue of $823 million and adjusted profit of $29 million. Loan delinquency rates stood at 0.89% for short-term loans and 2.23% for longer-term loans, both below the average 30-day credit card delinquency rate Klarna IPO debut: Stock jumps 30% on NYSE listing; Swedish BNPL firm eyes US market growth^[1].

The IPO has minted billionaires among Klarna's founders. At $40 a share, Siemiatkowski's 7% stake is worth about $1 billion, while co-founder Victor Jacobsson's 8.4% stake is valued at $1.3 billion Klarna IPO debut: Stock jumps 30% on NYSE listing; Swedish BNPL firm eyes US market growth^[1].

As Klarna begins its journey on the NYSE, investors will be closely watching the company's performance and the broader fintech market's response to its IPO.