Klarna Bank boss Sebastian Siemiatkowski made his clearest indication yet that the Swedish buy-now-pay-later (BNPL) heavyweight is gearing up for a debut on the US markets.
“It’s very likely that this is going to happen quite soon, but there are no official dates,” he said in a Bloomberg interview.
Siemiatkowski said the bulk of Klarna’s sales originate from the US, “so it’s at least leaning in the direction”.
Speculation over a London IPO emerged after Klarna incorporated a UK holding company in November 2023, while a favourable regulatory regime heaped further optimism for a London listing.
BNPL services are not currently subject to UK financial watchdog regulation, despite outcry from campaigners who have accused them of profiting from the cost-of-living crisis.
Yet this has failed to sway Klarna’s board, adding another disappointment to the London capital markets following a dismal year for new IPOs in the city.
The road to IPO has not been easy for Klarna.
Klarna's valuation has also been the subject of scrutiny after it was forced to slash its valuation by 85% to US$6.7 billion in a 2022 funding round, a stark contrast to its previous valuation of $46 billion.
This devaluation occurred following large-scale workforce and office space reductions, a shift in customer behaviours, and a wider downturn in tech stocks in the face of inflation and rate hikes.
However, its suggested valuation saw a 17% rebound last month after major shareholder Creades reportedly increased the value of its stake by $11.3 million.
Volatile valuation aside, sentiment surrounding Klarna was boosted after it posted its first profitable quarter in four years at the tail end of 2023.
Klarna’s true valuation will become clearer if an when it publishes a prospectus.