Klarna Shares Surge 15% in NYSE Debut After Pricing IPO Above Range

Klarna’s Strong NYSE Debut Highlights Investor Interest in Fintech Expansion

Shares of Klarna surged 15% during their first day of trading on the New York Stock Exchange, closing at $45.82 after the Swedish fintech priced its initial public offering (IPO) above expectations. The company set its IPO price at $40 per share on Tuesday, raising $1.37 billion and valuing the firm at approximately $17.3 billion.

Klarna is widely recognized for its buy now, pay later (BNPL) services, which have gained significant traction globally. The IPO comes amid a wave of high-profile technology listings this year, including stablecoin issuer Circle and design software platform Figma, both of which experienced strong market debuts. Crypto exchange Gemini is also preparing to go public later this week.

“It’s a milestone,” Klarna’s co-founder and CEO Sebastian Siemiatkowski told CNBC, likening the IPO to a wedding—an event that requires extensive preparation but signals the beginning of a longer journey.

Despite opening at $52, the stock settled lower by the end of the trading day. The company’s public market debut will test investor enthusiasm for Klarna’s evolving business model, which now includes banking products such as a debit card and personal deposit accounts in the U.S. To date, Klarna has issued 700,000 cards in the U.S. and maintains a waiting list of 5 million prospective customers.

Siemiatkowski noted that Klarna targets a different segment than competitors like Affirm, whose card offering has attracted 2 million users since 2021. Klarna’s card appeals to consumers seeking flexible payment options without the higher interest rates associated with some financing products.

Klarna faces competition from other BNPL providers, including Afterpay, acquired by Square (now Block) for $29 billion in 2021. Additionally, regulatory challenges loom, especially in the U.K., where the government is proposing new rules to regulate BNPL loans amid concerns about consumer affordability.

The IPO also represents a significant liquidity event for long-standing investors. Existing shareholders sold 28.8 million shares, raising nearly $1.2 billion at the IPO price. Klarna itself raised $222 million from the offering.

Sequoia Capital, an early investor since 2010, has realized substantial returns, selling 2 million shares and generating approximately $2.65 billion based on the IPO price. Andrew Reed, a partner at Sequoia, reflected on the firm’s early investment in Klarna and its impressive growth trajectory, now serving over 100 million consumers worldwide with more than $100 billion in gross merchandise value.

Conversely, SoftBank, which led a 2021 funding round valuing Klarna at $46 billion, has seen the value of its stake decrease amid market recalibrations.

Klarna’s performance in public markets will be closely watched as it navigates competitive pressures, regulatory developments, and its strategic shift toward banking services.