Klarna is synonymous with the “buy now, pay later” trend, and tends to buy until the end of the month, deferring payments or paying interest-free monthly installments.
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Online lender Klarna is above the expected range at a price of $40 per share on Tuesday in a deal valued at Swedish companies at around $15 billion.
Klarna, known for its popular purchases, said it raised $1.37 billion for the company and existing shareholders who are about to pay for the later products and withdraw some of its longtime positions. The company lists stocks on the New York Stock Exchange under the symbol “Klar”.
Along with companies like Crypto Firm, the open market has recently shown an increase in appetite for Tech IPOs. Round and software vendors Figma It surged with their highly anticipated debut. Competing Kralna positiveoriginally aimed to be made public earlier this year, but President Donald Trump put the plan on hold after an April announcement of mutual tariffs in dozens of countries.
Popularly known for its short-term, interest-free financing products, Klarna has tried to rebrand itself as a more digital retail bank in recent months. That IPO will be a test of excitement about the direction of Wall Street’s business.
Klarna disclosed a net loss of $53 million in the second quarter, expanding from $18 million in the same period of the year. Revenues rose 20% from the previous year, at $823 million on that stretch.
Klarna makes money by charging merchants who use online payment tools small fees on every transaction. It also generates income from long-term funding products and late fee interest.
Of the total amount raised, $1.17 billion goes to shareholders and just $200 million goes to the company.
Watch: Everything you need to know about Klarna’s IPO
