Core Insights - Klarna Group Plc shares surged 30% in their initial trading, raising $1.37 billion in an IPO, indicating a positive outlook for new listings in the market [1][2] - The shares opened at $52, above the IPO price of $40, with significant demand leading to a double-digit oversubscription [2] - The company's valuation reached nearly $20 billion post-IPO, a significant decline from the $45.6 billion valuation in 2021 [3][4] Company Developments - Klarna's CEO emphasized the company's evolution beyond its buy-now, pay-later roots, expanding into various banking products such as savings accounts and credit cards [5][6] - The company has been focusing on its "fair financing" product, which allows customers to pay for larger items over extended periods, contributing to net interest income but also increasing provisions for potential credit losses [6] - Currently, loans under this "fair financing" model represent about 2% of Klarna's total transactions, with expectations for growth as the number of participating merchants has doubled in the last two years [7]