Klarna Group PLC shares will begin trading on the New York Stock Exchange on Wednesday with an initial market valuation of $15.2 billion.
The initial public offer for the buy-now-pay-later firm was finally priced at $40 a share, above the $35-37 initial range, with the offer was around 26 oversubscribed for the amount of shares that were on offer.
A total of $1.37 billion was raised in the IPO, Klarna said, with existing investors selling 34.3 million shares or around 9% of the total shares.
The valuation provided a boost for the co-founders and major investors selling shares in the IPO and those hanging onto theirs.
London-listed Chrysalis Investments Ltd (LSE:CHRY) holds 4.2 million shares in Klarna, having first invested in August 2019 at a valuation of $5.5 billion and across three rounds of investment in total at a blended price of approximately $25.6 per share.
The Klarna IPO is timed perfectly with $50 a share a possibility, said technical analyst Axel Rudolph at IG.
He said the IPO is "one of the defining fintech IPOs of 2025 - underscoring both investor appetite for innovation and the company’s resilience in a shifting market.
"The IPO seems perfectly timed as Wall Street is trading at record highs, making a $50 share price a distinct possibility before year-end."
Morningstar equity analyst Niklas Kammer said Klarna had "laid a solid foundation" ahead of its IPO, recently securing multiple agreements with payment service providers to expand its reach as a payment method.
"While its platform is currently just breaking even, starting to eke out a marginal operating profit, the company is poised for a big shift. As its platform scales and its underwriting models are enriched with more shopper behaviour data, we anticipate profitability to improve," Kammer said.
"These new payment service provider agreements will enable Klarna to upsell its conversion and customer acquisition funnel tools to merchants, propelling the BNPL provider to reach more merchants, serving more customers, and growing more profitable."