Klarna Bank AB is reportedly in the process of selecting Goldman Sachs Group Inc. to lead its upcoming US initial public offering, according to sources familiar with the matter. The company, based in Stockholm, is currently engaged in discussions with investors regarding a sale of existing shares prior to the planned IPO.
While Klarna had previously considered a valuation of approximately $20 billion for the IPO, deliberations are ongoing and details of the offering may evolve. It is possible that additional banks may be added to the underwriting lineup. Both Klarna and Goldman Sachs have declined to comment on the matter.
Klarna saw its private valuation reach $45.6 billion in a funding round in 2021, before declining to $6.7 billion the following year due to the impact of rising interest rates on lenders. In preparation for the IPO, the company has undergone strategic shifts, divesting certain businesses and increasing investment in artificial intelligence. For instance, Klarna recently finalized a deal to sell its Checkout payments business for approximately $520 million.
In the first quarter, Klarna reported an adjusted profit as revenue in the US, its largest market, experienced a 38% increase. Founded in 2005, Klarna provides payment services to around 150 million active customers, with approximately 2 million transactions processed daily. The company boasts 34 million customers in the United States.
This article includes contributions from Amy Or. ©2024 Bloomberg L.P.
