In an exciting turn of events, a prominent Swedish fintech company specializing in the buy now, pay later (BNPL) model is reigniting its plans for an initial public offering (IPO). The firm aims to secure up to $1.27 billion through this listing, which could potentially elevate its market valuation to approximately $14 billion.
The company, along with its shareholders, is set to offer around 34.3 million shares, priced between $35 and $37 each, as detailed in a recent update to its registration statement. Out of this, the firm is expected to benefit from the sale of about 5.6 million shares, while shareholders will be divesting nearly 29 million shares.
Plans are in place for the shares to be listed on the New York Stock Exchange, with the ticker symbol “KLAR.”
There has been considerable anticipation surrounding this company’s public debut, especially following the remarkable success of its BNPL lending model in the post-pandemic landscape. After entering the U.S. market six years ago, the company achieved a staggering valuation exceeding $45 billion in 2021. However, the IPO was postponed as market conditions shifted, leading to a significant drop in its valuation by 85%, bringing it down to $6.5 billion as the venture capital bubble burst.
Despite these challenges, the company has demonstrated robust growth, with a remarkable 54% increase in revenue, reaching $823 million in the second quarter compared to the previous year. This growth is attributed to a 14% rise in gross merchandise value, totaling $6.9 billion. Although the company is still operating at a loss, reporting a net loss of $53 million, this figure represents a 42% improvement from the $92 million loss recorded a year prior.
The IPO offering is being managed by major financial institutions, including Goldman Sachs, JP Morgan, and Morgan Stanley, with additional support from several other banks such as Bank of America Securities, Citigroup, Deutsche Bank, Societe Generale, and UBS.