Company Overview - Klarna's stock finished its first trading session up 16% from its IPO price, closing at $46.40 and giving the company a market value of approximately $17.5 billion [1] - The IPO raised Klarna $1.37 billion, indicating strong demand as it exceeded the previous pricing estimate of $35-$37 per share [2] - Klarna's market cap remains significantly below its previous valuation of $45.6 billion from a SoftBank investment in 2021, but is more than double its worth of $6.7 billion after a private funding round in 2022 [3] IPO Context - This was Klarna's second attempt at an IPO in 2023, having previously paused its offering plans in April due to market volatility [4] - Klarna's IPO is part of a busy week for New York listings, reflecting a recovery in the capital raising environment [4] - The year has seen 144 companies worth over $50 million go public, representing a 53% increase compared to the same period in 2024 [6] Business Model and Market Position - Klarna is known for its buy now, pay later (BNPL) scheme, providing short-term credit to customers for installment payments on everyday purchases [7] - The company has a user base of 111 million and partners with 790,000 merchants [7] - Critics of BNPL platforms argue that these services encourage overspending and pose credit risks if customers default [8]
Klarna stock jumps 16% in NYSE debut, valuing BNPL leader at $17.5 billion