Klarna valued at $19bn in debut on Wall Street

Buy-Now’s shares, the payment lender Klarna jumped the first day of public negotiation in the United States, giving the company a market value of more than $ 19 billion (14 billion pounds sterling).

He marks an important step for the Swedish loans giant, who presented himself as a challenger to credit cards and traditional banks.

Founded in 2005, the company is known to allow buyers to pay purchases in smaller payments without interest and has proven to be popular, with around 93 million active users in 26 countries.

But the company was faced with current issues on the risk that its business model could lead people to spend beyond their means.

Klarna managed transactions worth $ 105 billion last year. He is a major world player in the shopping space, entering the United Kingdom in 2014 and the United States in 2019.

In its country of origin, Sweden, more than 80% of adults used the service last year, depending on the company.

In a message to staff shared by the company, CEO Sebastian Siemiatkowski said that the time would provide “fuel” to the company when it was looking to make similar breakthroughs on other markets.

The company raised $ 1.37 billion in the initial public offer (IPO), selling stocks alongside certain long -standing investors for $ 40.

The shares have opened at $ 52 each, increasing by 30% compared to the IPO price – which had estimated the company to $ 15 billion – to more than $ 19 billion.

But the actions derived later by the end of the day, setting around $ 46 and putting the value of the company at $ 17 billion.

The company continues to be negotiated at a discount compared to 2021, when a SoftBank Group investment has put the business value at more than $ 45 billion. The company was then struck by the economic slowdown and the increase in interest rates.

Joachim Dal, partner of GP Bullhound Investment Management, said that he thought that investors misunderstood Klarna, which makes most of his money by invoicing costs for sellers for purchases involving his subsequent salary service.

“In our opinion, it is more a payment company than a lender,” he told the first BBC show, noting the “very low” rates of late payments. “It is more about facilitating a smooth experience on the side of payments than providing credit to consumers.”

Last year, Klarna declared a turnover of $ 2.8 billion, up 24% in annual shift.

But since its entry in the United States, its profitability has suffered because it faces higher costs for the treatment of transactions.

He reported a loss of $ 52 million in the three months until June, compared to 7mm 7 years ago.

Klarna has been planning a public offer for years. A plan to make its debut in April was delayed after the American pricing announcements made a financial market filter.

But actions in the United States have since recovered, the main clues negotiating at record heights.

Several other companies, including the Crypto Gemini company, provide public offers this week, seeking to take advantage of the favorable climate.

“For any business in the technology sector seeking to become public, there is only one market and it is the market to Wall Street,” said Dal.

“This is where you have the most liquidity, most of the coverage of stock analysts, this is where you have most of the comparable companies listed and frankly you also get the highest assessments.”