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by Megan Stals
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Klarna IPO: How to buy Klarna shares

Swedish fintech Klarna is now expected to list in the U.S., but questions about the timing still remain.

What is the Klarna IPO date?

There is still no date set for the Klarna IPO, but in a recent interview with Bloomberg, Klarna CEO Sebastian Siemiatkowski said: “It’s very likely that this is going to happen quite soon.”

Klarna's boss added to speculation about its listing location by saying they are “leaning in the direction” of the U.S. markets due to the bulk of their revenues coming from the nation.

What is the expected Klarna IPO share price?

The expected share price of Klarna will not be available until the IPO is closer. 

The business was valued at around US$7.85b in December 2023, dropping a significant amount from its valuation of US$45.6b in 2021, when it was Europe’s most valuable startup. This valuation will be updated again closer to the listing date.

What is the ticker symbol for Klarna?

There has been no information released on the ticker symbol of Klarna. We’ll update this article when more information becomes available.

How to buy shares in Klarna

Klarna is not currently listed at this time. When the firm completes an IPO, you can follow the steps below to buy shares in the company.

1. Open a stock investing account

If you want to buy Klarna stock, you'll need to sign up to an investing platform with access to the U.S. markets. Lucky for you, Stake has access to U.S. stock exchanges.

2. Fund your account

Complete an application with your personal and financial details. Fund your account with a bank transfer, debit card or even Apple/Google Pay.

3. Search for Klarna

Find the asset by searching for the name or ticker symbol. Do your own research to ensure it is the right investment product for your own circumstances.

4. Choose an order type and buy the asset

Buy on any trading day with a market, limit or stop order. Look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.

5. Monitor your investment

Optimise your portfolio by tracking how the security performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights that affect your shares.

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About Klarna

Klarna offers payment processing services to retailers, intending to make online and in-store shopping a smoother experience. The company primarily operates in the buy now, pay later (BNPL) segment, providing consumers with instalment plans to finance their purchases over an extended period. The most common option is splitting the bill into four interest-free payments due fortnightly.

The rise of BNPL is seen as a shift away from credit cards, especially among younger consumers. However, like its rivals Affirm ($AFRM) and Afterpay ($SQ), Klarna does face risks around changing regulations for credit checks for its users and around their users' potential failure to pay. BNPL is a competitive space, with many banks also creating their own versions of these services. 

Klarna earns revenue from late repayment fees from customers, interchange fees, interest on loaning consumer deposits and charging retailers various fees. The company receives a fee and percentage of the total cost of an item each time its payment option is used during a sale at a retail partner. Retailers are incentivised to use Klarna as it tends to result in higher sales volumes, while Klarna takes on the initial payment risk. 

Klarna is working on diversifying its business and reducing its exposure to consumer defaults. The company received a banking license in Sweden in 2017. The firm offers deposit and savings accounts in several nations. Customers can pay using virtual or physical cards from the firm, supported by the Visa ($V) network. The company has also launched a monthly subscription, which gives consumers additional reward points and discounts at certain retailers.

Klarna reported regular profits until 2018, when an expansion to the U.S. and higher credit losses affected its bottom line. The September 2023 quarter saw profits return, but the company still experienced an overall loss for the year. Higher interest rates put pressure on the business model, adding to the drive to increase revenue and reduce costs.

Who owns Klarna?

Klarna was founded in 2005 by Sebastian Siemiatkowski, Niklas Adalberth and Victor Jacobsson. Siemiatkowski still leads the company as CEO. Although Jacobsson has left Klarna, he still holds a significant stake in the company as a shareholder. The original idea behind Klarna was conceived while the group was studying at the Stockholm School of Economics. Their goal was to simplify and secure online payments.

Klarna's growth and global presence have attracted substantial investments from renowned venture capitalists and private equity firms. Notable investors such as Sequoia Capital, Silver Lake, Bestseller Group, Dragoneer, Permira, Ant Group, Visa ($V) and Atomico have contributed to Klarna's development. Commonwealth Bank ($CBA) is also on the list of investors, holding a 5.5% share of the firm and 50% ownership rights to its Australia and New Zealand business.

Klarna IPO details

Proposed ticker symbol

Not available at this time

Company Name

Klarna Bank AB

Exchange

Not available at this time

Share price

Not available at this time

Shares offered

Not available at this time

We’ll update this article when more information becomes available.

🎓 Learn more: What is an initial public offering and how do they work?

This does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.


Portrait photo of Megan Stals, Market Analyst at Stake.

Megan Stals

Market Analyst

Megan is a markets analyst at Stake, with 7 years of experience in the world of investing and a Master’s degree in Business and Economics from The University of Sydney Business School. Megan has extensive knowledge of the UK markets, working as an analyst at ARCH Emerging Markets - a UK investment advisory platform focused on private equity. Previously she also worked as an analyst at Australian robo advisor Stockspot, where she researched ASX listed equities and helped construct the company's portfolios.


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