Klarna Confirms IPO Plans on the New York Stock Exchange
Klarna announces details of its IPO on the NYSE, targeting a share price of $35-$37 and features substantial shareholder involvement.
Key Points
- • Klarna confirms IPO on the NYSE with shares priced between $35 and $37 in September 2025.
- • Company plans to issue 34.3 million shares, raising nearly $1.5 billion for growth.
- • Existing shareholders will sell 28.8 million shares, including Sequoia Capital.
- • Small Swedish investors may miss early investment opportunities, reminiscent of the Spotify IPO.
Klarna, the Swedish payment processing giant, has officially confirmed its plans to go public on the New York Stock Exchange (NYSE), revealing significant details about its impending initial public offering (IPO). The announcement, made on September 2, 2025, outlines a share price set between $35 and $37, which exceeds prior expectations of $34 to $36, showcasing strong market confidence in the company.
The IPO will consist of approximately 34.3 million shares, of which 5.5 million will be new shares issued by Klarna to raise nearly $1.5 billion (approximately 13.8 billion SEK) for growth initiatives. The remaining 28.8 million shares will be sold by existing shareholders, prominently including significant investors like Sequoia Capital. This strategic move aims to solidify Klarna's market position amidst ongoing scrutiny in the financial tech sector, as it attempts to navigate a challenging landscape marked by labor disputes and internal power struggles over its two-decade history.
In the first half of 2025, Klarna reported revenues of 12.3 billion SEK, a slight increase from 11.5 billion SEK during the same period in 2024, although the company also faced a loss of 1.3 billion SEK. Despite these financial hurdles, Klarna's founders, Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, remain optimistic about the company's future as they adapt to the evolving market environment.
However, the IPO announcement has sparked concerns regarding access for Swedish small investors, who are expected to miss out on early investment opportunities—mirroring the situation that occurred during Spotify's 2018 listing on the NYSE. Financial expert Nicklas Andersson noted that the likelihood of small investors participating before the stock is publicly traded is minimal, placing them at a disadvantage compared to other investors.
As Klarna moves forward with its IPO plans, it continues to navigate both growth and scrutiny, potentially setting a new precedent for Swedish companies entering international markets. With the submission of its prospectus to the U.S. Securities and Exchange Commission (SEC), Klarna is poised for a pivotal market entry, which will be closely monitored by investors and analysts alike.