Klarna (KLAR) Stock: Swedish Payment Giant Leads Busy IPO Week on NYSE

TLDR

Table of Contents

Klarna priced its IPO at $40 per share, above the expected $35-$37 range, raising $1.37 billion and valuing the company at $15.1 billion
The Swedish BNPL company will begin trading on NYSE under ticker KLAR on Wednesday with 34.3 million shares
Klarna’s IPO was delayed from original March plans due to tariff-driven market volatility in April
The company reported a $52 million net loss in Q2 2025, up from $18 million in the same period last year
Klarna leads a busy IPO week with seven companies going public, marking the biggest U.S. IPO week in years

Klarna priced its initial public offering at $40 per share Tuesday evening. The price came above the expected range of $35 to $37 per share.

The Swedish buy-now, pay-later company raised $1.37 billion from the offering. This values Klarna at $15.1 billion.

$KLAR Klarna priced its IPO at $40/share, topping the $35–37 range and valuing the BNPL lender at $15B.
The offering raised $1.37B, with just $200M to Klarna and $1.17B going to existing holders. $KLAR begins trading today, Sept 10, 2025, on the NYSE. pic.twitter.com/OjUbrPNudb
— TheMrPercent (@themrpercent) September 10, 2025

Trading begins Wednesday on the New York Stock Exchange under ticker KLAR. The company will offer 34.3 million shares for trading.

The shares represent roughly 9% of Klarna’s 378 million total outstanding shares. This makes it one of the largest tech IPOs of 2025.

Klarna’s public debut comes after months of delays. The company originally filed for its IPO in March 2025.

President Trump’s tariff policies disrupted those initial plans. Markets faced major volatility in April when new tariffs hit U.S. trading partners.

The company joins a busy week for IPOs. Seven companies plan to go public in New York by Friday.

This marks the biggest U.S. IPO week in years. The strong lineup suggests investor appetite is returning after a long dry spell.

BNPL Market Dynamics

Klarna operates in the competitive buy-now, pay-later space. The company allows customers to split purchases into smaller payments over time.

Founded in 2005, Klarna has grown into a BNPL heavyweight. The service gained popularity during the COVID-19 pandemic as online shopping surged.

U.S. rival Affirm currently commands a $29 billion market valuation. Affirm’s shares have jumped 45% this year.

The two companies target different market segments. Klarna focuses on smaller purchases with an average order value of $101.

Affirm targets bigger purchases with an average order value of $276. The company offers longer zero-interest financing options.

Financial Performance Challenges

Klarna reported mixed financial results in recent quarters. The company posted a $52 million net loss in Q2 2025.

This represents an increase from the $18 million loss in the same period last year. The company also reported a $99 million net loss in Q1 2025.

Customer defaults contributed to the losses in Q1. CEO Sebastian Siemiatkowski noted that Q2 saw record numbers of on-time payments.

Klarna was profitable for its first 14 years of operation. Recent losses stem from aggressive expansion in the U.S. and other markets.

The company now operates in 26 countries worldwide. The United States represents Klarna’s largest market.

At its peak in 2021, Klarna raised funds at a $45.6 billion valuation. This dropped to $6.7 billion by 2022 due to rising interest rates.

The current $15.1 billion IPO valuation represents a recovery from that low point. Samuel Kerr from Mergermarket called the pricing conservative but effective.

Klarna holds a full banking license in the European Union. The company has expanded beyond BNPL into credit and debit card services.

The IPO comes as BNPL services gain traction with inflation-conscious consumers. Analysts expect BNPL to take market share from traditional debit cards.

CEO Siemiatkowski highlighted strong payment performance in Q2 2025 during the IPO process.

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