Klarna has set its initial public offering (IPO) price at $40 per share, surpassing the previously suggested range of $35 to $37 per share in the United States.

With this pricing, Klarna’s valuation is estimated to be approximately $15.2 billion, as it raised more than $1.4 billion through the IPO. The company offered 34,311,274 ordinary shares, with Klarna selling 5 million shares and existing shareholders offering 29,311,274 shares. According to Reuters, the offering was over-subscribed by a factor of 25.

Klarna’s IPO Progress

Klarna will list on the New York Stock Exchange under the ticker “KLAR.” The offering is scheduled to close on Thursday, pending standard closing conditions. Goldman Sachs, J.P. Morgan, and Morgan Stanley are serving as joint book runners.

Despite its current valuation being considerably lower than the $45 billion it was worth in 2021, Klarna’s value dropped to $6.7 billion in 2022 due to increased interest rates and inflation.

Klarna has been seeking a US listing for several years but had to pause its efforts this spring due to uncertainties related to potential US tariffs on its trading partners, which led to delays in operations. The company incurred a loss primarily because of one-time expenses associated with restructuring, share-based compensation, and depreciation. Nevertheless, Klarna’s revenue saw an increase of 13% year-over-year, reaching $701 million. It also reported having 100 million active users and 724,000 merchant partners globally.

While Klarna continues to see growth in user count and gross merchandise value, maintaining profitability remains a significant challenge. Prior to its expansion into the US market in 2019, which came just before the online shopping boom fueled by the COVID-19 pandemic, Klarna was the most profitable.

Experts suggest that Klarna’s brand strength may help it establish itself among other fintechs as the sector is rapidly evolving. Recognition of the company could be a crucial factor in its relevance and sustainability.