How to trade the Klarna IPO
Trade as soon as the share price opens
Available on both account types
Costs kept low on this and all other markets
Low minimum trade sizes and stops available to manage downsize risk
ABOUT Klarna
Klarna, the Swedish fintech company founded in 2005 is preparing for a highly anticipated initial public offering (IPO) planning to list on the NYSE exchange. Best known for its “buy now, pay later” (BNPL) service, the company has transformed global payments by allowing consumers to make purchases through flexible installment plans.
At one point, the company was valued at $46 billion. In 2022, this valuation plunged by 85%, largely due to rising inflation and competition from other BNPL providers such as Afterpay, Paypal, and payment gateway providers like Revolut. Despite this, in recent years, Klarna has made a strong recovery. The company has expanded its global footprint, and secured partnerships with various retailers to solidify its position as a leading player in the BNPL space. Among its partners are high-profile brands like Deliveroo, ASOS, Samsung and DoorDash, a recent partnership that has sparked controversy on social media ahead of the company’s IPO.
Now with 93 million active consumers, 675k merchants and 2.9 million transactions a day, the company has been growing year on year with revenues up 24% from 2023 at $2.8 billion in 2024. With its expanding user base, Klarna’s valuation ahead of its IPO could be estimated at $15 billion. The company’s successful pivot and aggressive international expansion positions it well to capitalise on the evolving global payments landscape as it prepares to go public. With delays due to ‘Liberation Day’ market turbulence, the IPO could prove to be a key gauge of investor sentiment.
Spread betting or CFD’s
You can trade on the Klarna IPO via either spread bets or CFD’s. These products allow you to speculate on the underlying price of an asset class including the Klarna IPO. You can learn more about these two products and the differences between them here.
How do IPOs work?
IPOs work by having a company put its shares up for sale to the public. Some common reasons for this include seeking to raise capital for business growth, decreasing or settling debts, positioning itself to better attract and retain talent, or increasing liquidity.
The IPO process starts off with a detailed audit of the company by an external resource – it must be conducted taking all the company’s financials into consideration. Next, a registration statement needs to be prepared by the business and filed with the appropriate exchange commission. If the commission grants approval, the company can then list a set number of shares at a price determined by an investment bank.
