Klarna opens at $52 per share in NYSE debut after pricing IPO above range

## Klarna’s IPO Soars: A New Chapter for the BNPL Giant

Klarna, the popular “buy now, pay later” (BNPL) service, made its debut on the New York Stock Exchange, and the market responded enthusiastically. Here’s a quick rundown of the key takeaways:

• Strong Debut: Klarna’s shares opened at $52, a 30% jump from its IPO price of $40.
• Valuation: The IPO valued Klarna at approximately $15 billion, though the stock’s mid-day performance pushed that to around $18 billion.
• Raising Funds: The IPO raised $1.37 billion, with the majority going to existing shareholders. Klarna itself raised $222 million.
• Market Context: The IPO is part of a trend of increasing tech IPOs, indicating strong demand from Wall Street.
• Strategic Shift: Klarna is expanding into banking services, including debit cards and deposit accounts in the U.S.
• Competition: Klarna competes with Affirm and Afterpay in the BNPL market.
• Regulatory Landscape: The company faces potential regulatory scrutiny, particularly in the UK, where BNPL loans may come under formal oversight.
• Investor Returns: Long-time investors like Sequoia are seeing significant returns, while others, like SoftBank, have experienced a decline in their investment’s value.
• CEO’s Perspective: Klarna’s CEO views the IPO as a milestone, emphasizing the company’s long-term vision and continued growth.

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