Sweden's "buy now, pay later" financial firm Klarna has raised its share price for its debut on the New York Stock Exchange on Wednesday, aiming to raise $1.37 billion.
Klarna said in a statement late Tuesday that the share price would be set at $40, valuing the company at over $15 billion.
Last week the company said it was targeting a price between $35 and $37, which would raise $1.27 billion.
The company will offer 34.3 million shares for sale, of which an overwhelming majority of 28.7 million is coming from existing investors who are ceding their shares.
As a result, Klarna will receive only a small share of funds from its initial public offering (IPO).
The company founded by three students in 2004 allows shoppers to pay up to 30 days after placing an order or make purchases in four instalments without interest.
The group made a net profit of $21 million last year on revenue of $2.8 billion, with most revenue coming from commissions paid by online retailers. It also earns some interest income on longer term financing of consumer purchases.
However, it reported a net loss of $53 million in the second quarter of 2025 despite a 20 percent increase in revenue to $853 million.
Three-quarters of Klarna's income comes from merchant commissions ($603 million in the second quarter).
The remainder comes from interest payments ($219 million) on credit offered to customers.
In recent years, the company has expanded its financial services to include services like digital wallets and allowing customers to earn cashback rewards, thereby competing with retail banks.
The company, which entered the US market in 2019, has seen its valuation yo-yo over the years.
It was valued at $45.6 billion in 2021 following a consumer spending boom during the Covid-19 pandemic, but the next year it fell to $6.7 as inflation and interest rates climbed and investors turned cold on tech firms.
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Klarna said in a statement late Tuesday that the share price would be set at $40, valuing the company at over $15 billion.
Last week the company said it was targeting a price between $35 and $37, which would raise $1.27 billion.
The company will offer 34.3 million shares for sale, of which an overwhelming majority of 28.7 million is coming from existing investors who are ceding their shares.
As a result, Klarna will receive only a small share of funds from its initial public offering (IPO).
The company founded by three students in 2004 allows shoppers to pay up to 30 days after placing an order or make purchases in four instalments without interest.
The group made a net profit of $21 million last year on revenue of $2.8 billion, with most revenue coming from commissions paid by online retailers. It also earns some interest income on longer term financing of consumer purchases.
However, it reported a net loss of $53 million in the second quarter of 2025 despite a 20 percent increase in revenue to $853 million.
Three-quarters of Klarna's income comes from merchant commissions ($603 million in the second quarter).
The remainder comes from interest payments ($219 million) on credit offered to customers.
In recent years, the company has expanded its financial services to include services like digital wallets and allowing customers to earn cashback rewards, thereby competing with retail banks.
The company, which entered the US market in 2019, has seen its valuation yo-yo over the years.
It was valued at $45.6 billion in 2021 following a consumer spending boom during the Covid-19 pandemic, but the next year it fell to $6.7 as inflation and interest rates climbed and investors turned cold on tech firms.
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