Sweden-based payments company Klarna is preparing for an initial public offering in the US according to sources cited by the Financial Times.
According to the same source, Morgan Stanley, JPMorgan, and Goldman Sachs are expected to lead the process, though final decisions are yet to be made and additional banks may join the effort. The IPO could occur in the first half of next year, but it’s worth noting that nothing has been confirmed at the time of writing. Klarna’s valuation was reduced to USD 6.7 billion in 2022, down from USD 46 billion in 2021, reflecting broader market trends and investor focus on profitability.
Klarna’s executives and advisers believe that the IPO market will recover by 2025, which influenced their decision to pursue the listing. The company has not specified a target valuation for the IPO. Klarna’s primary investors include Sequoia Capital, SoftBank, Bestseller Group, and Mubadala.
