Online lender Klarna has raised the price of its initial public offering (IPO) to $40 U.S. a share, which is above its expected range, due to strong demand from investors.
The final IPO price values the Swedish company at about $15 billion U.S. Klarna, known for its popular buy now, pay later products, said the IPO raised $1.37 billion U.S.
The company is scheduled to begin trading on the New York Stock Exchange today (Sept. 10) under the ticker symbol “KLAR.”
Klarna had initially priced its shares at $35 U.S. to $37 U.S., but raised the price due to overwhelming demand, particularly from individual retail investors.
Klarna, which competes against Affirm (AFRM) in the buy now, pay later space, planned to go public earlier this year but put those plans on hold due to market turmoil caused by U.S. tariffs.
Known for offering short-term, interest-free financing, Klarna has attempted in recent months to rebrand itself as a digital bank.
While the company’s loans are popular with consumers, it is not yet profitable. Klarna disclosed a net loss of $53 million U.S. in this year’s second quarter, up from $18 million U.S. a year ago.
Klarna’s revenue rose 20% from a year earlier to $823 million U.S. during Q2.
Management noted that of the total amount being raised, $1.17 billion U.S. is going to existing shareholders with just $200 million U.S. going to the company’s coffers.
