Klarna is preparing to price its US initial public offering (IPO) at the top of its marketed range or possibly higher as strong demand pushes the deal into significant oversubscription.
The Swedish-founded fintech and its shareholders are offering 34.3 million shares at $35 to $37 apiece, with Klarna itself issuing 5.6 million new shares. Existing holders, including co-founder Victor Jacobsson, Sequoia Capital, and Anders Holch Povlsen’s Heartland A/S, are selling 28.8 million.
At the top of the range, the transaction could raise up to $1.27 billion and value the company at about $14 billion.
Investor interest has exceeded expectations, with reports indicating the IPO has been oversubscribed by more than eight to fifteen times.
Institutional orders closed on Monday, and pricing is scheduled to be finalized after markets close on Tuesday.
Shares are set to begin trading on the New York Stock Exchange under the ticker symbol “KLAR.”
Founded in 2005, Klarna has grown into one of the world’s leading consumer finance and payments platforms.
The company serves 111 million active customers globally and partners with 790,000 merchants.
Over the 12 months ending June 30, Klarna processed $112 billion in gross merchandise value.