Summary
Klarna, a Swedish company known for its buy-now, pay-later service, began trading on Wall Street with a market value exceeding $19 billion. The firm's public debut raised $1.37 billion by selling shares at $40 each, with prices later rising 30%. Despite its strong market entry, Klarna continues to trade below its 2021 value due to economic challenges.
Key Facts
- Klarna's market value exceeded $19 billion on its first day of trading in the US.
- The company offers a buy-now, pay-later service, allowing customers to pay for purchases in installments without interest.
- Klarna raised $1.37 billion in its initial public offering (IPO), selling shares at $40 each.
- Shares opened at $52, a 30% rise from the IPO price.
- In 2021, Klarna was valued at over $45 billion but has faced challenges from economic slowdown and rising interest rates.
- Last year, 80% of adults in Sweden used Klarna's service.
- The firm handled transactions worth $105 billion last year.
- Klarna reported revenue of $2.8 billion in the previous year but had a $52 million loss in the last quarter.
