Klarna has taken another step towards a stock market float in the US with approval granted to set up a new UK-registered holding company.
Currently based in Stockholm, the switch would see shareholders swapping their shares in Klarna Holdings into a new UK-based PLC, Sky News reported.
According to the report, any listing would take place in the first quarter of 2025 at the earliest with an estimated valuation of up to US$20 billion for the buy now pay later (BNPL) specialist.
Klarna’s decision to register in the UK but list in New York will be another snub to the LSE, which is struggling to stem the tide of companies heading for the US.
“The decision to establish a holding company in Britain reflected the UK's standing from a legal, regulatory and capital markets perspective,” noted the report.
Klarna’s valuation has been volatile but advisors are looking at New York-listed Affirm Holdings as a comparator.
Britain has been threatening to clamp down on BNPL through a change to the Consumer Credit Act, but this looks to have been pushed out indefinitely.