Klarna begins trading, opens at $52 per share on NYSE

Core Viewpoint - The company is set to open its shares at a price between $52 and $53, significantly higher than the $40 pricing from the previous night, indicating strong market demand and a positive reception for the IPO [1][4]. Company Overview - The company is a 20-year-old firm that has been rumored to go public for some time, with previous attempts to launch an IPO being delayed due to market volatility [2][3]. - It operates in the buy now pay later and fintech space, with strong growth reported at 21% year-over-year on the top line [5]. IPO Details - The IPO priced $3 above the initial range and is expected to open approximately 30% higher, implying a valuation of about $20 billion, which is below its private market valuation in 2021 but above 2022 levels [4]. - The IPO raised over a billion dollars, indicating a healthy public market environment and strong investor interest [6][12]. Market Dynamics - The IPO market is showing signs of recovery, with larger IPOs trading above their issuance prices, suggesting a favorable environment for upcoming deals [8][10]. - The demand for this IPO was characterized by a mix of retail and institutional interest, with more institutional flow observed during the opening [7][8]. Valuation Insights - The initial trading showed a 34% increase from the IPO price, which is considered a successful outcome in the investment banking community [9][10]. - Only about 17% of the float was primary issuance, indicating that most shares sold were from existing shareholders rather than new capital raised by the company [12].