Investing.com - Klarna says it has "confidentially submitted" a draft registration statement with regulators in the US, kick-starting the process of its much-anticipated initial public offering.
The fintech group known for its "buy now, pay later" services noted the flotation would take place after the Securities and Exchange Commission had reviewed the documents, although the exact timing of the IPO was still subject to market conditions.
It added that the number of shares and the price range for the offering have yet to be determined. A flotation in New York by the Swedish business would likely come as a blow to the IPO market in Europe, which has been recovering from a slower period that has been fueled in part by regional political uncertainty.
Klarna was initially valued at $46 billion in 2021, making it Europe's most-valuable startup, but a jump in interest rates led to investors re-valuing it at $6.7 billion during its previous fundraising round in 2022.
The company, which is licensed as a bank in Sweden and is overseen by financial authorities in Germany and the UK, has become known as a key player in BNPL loans, which provide short-term credit that enables customers to spread payments for purchases over a series of no-interest installments.
Following a strong period fueled by a boom in e-commerce demand during the COVID-19 pandemic, BNPL firms like Klarna have grappled with rising interest rates that have pushed up the cost of raising funds. Increased cost-of-living pressures have also dented consumer spending activity, further squeezing margins.
At Klarna, plans to expand into the US also contributed to several years of losses, although the group says it has since returned to profit, according to the Financial Times.