Klarna saw its shares rise 15 per cent in its trading debut, buoyed by a $US1.37 billion initial public offering. The IPO signals ongoing strength in the market for new listings. Klarna is a financial services company providing payment solutions for online retailers. It also offers direct-to-consumer retail services.
The company’s shares, which experienced a surge of up to 43 per cent during Wednesday’s trading, closed at $US45.82 each in New York. This figure surpasses the IPO price of $40 per share. The offering, which was oversubscribed by a double-digit margin, was priced on Tuesday above the initial marketed range. Approximately half of the prospective investors who placed orders were unable to secure shares.
This closing price gives Klarna a market value exceeding $17 billion, based on the number of outstanding shares. While stock options and warrants could slightly augment this valuation, it still represents a considerable decrease from the $45.6 billion valuation achieved in 2021. The prior valuation was reached at the peak of the online shopping boom fuelled by the COVID-19 pandemic.
