Klarna to seek valuation of up to US$14 billion in IPO next month, Reuters sources say

Swedish fintech Klarna will restart its plan to go public in the United States next month (AP Photo/Pavel Golovkin, File)

STOCKHOLM — Swedish fintech Klarna will restart its plan to go public in the United States next month with a valuation of between US$13 billion and $14 billion, according to two sources familiar with the matter.

The company paused its IPO plans in April after U.S. President Donald Trump’s sweeping tariffs rattled global markets. It had also looked at going public in 2021 but decided not to proceed.

The shares sold in the offering could be priced at between $34 and $36 as early as this week, the sources said.

That would be a sharp drop from the valuation of close to $50 billion Klarna was aiming for in 2021 and down from more than $15 billion earlier this year.

One of the sources said Klarna is looking to raise close to $1 billion from the IPO.

Klarna declined to comment.

This summer’s improvement in equity markets and robust debuts from new issuers have fueled renewed enthusiasm for U.S. initial public offerings.

Design software maker Figma and stablecoin giant Circle are among those to have recently listed, with shares peaking 333% and 864%, respectively, above their IPO prices in the days following their debut.

The 20 biggest U.S. IPOs this year averaged a first-day share price rise of 36 per cent, a Reuters calculation using data compiled by LSEG showed.

Klarna, which reshaped online shopping with its short-term financing model, said earlier this month that its second-quarter revenue rose 20 per cent from a year earlier on a like-for-like basis to $823 million, while adjusted operating profit was up $1 million to $29 million.

Active customers rose 31 per cent year-on-year to 111 million.

(Reporting by Supantha Mukherjee in Stockholm, additional reporting by Charlie Conchie; Editing by Anousha Sakoui, Kirsten Donovan)