Sebastian Siemiatkowski, Chief Executive Officer of Klarna Bank AB, during a conversation with media representatives, stated a high level of probability that the initial public offering (IPO) of this Swedish fintech giant in the United States will take place shortly, noting that there is no specific time frame for the implementation of the relevant intention.
The head of the mentioned company said that the United States is a natural choice for an IPO. He noted that this country is the largest market in which the fintech giant is present, in terms of such an indicator as revenue. Sebastian Siemiatkowski stated that this circumstance makes the choice obvious.
There has been a lot of speculation about when Klarna will hold an IPO. The Swedish market, which is domestic for the company, and the United Kingdom are also areas with potential opportunities for such actions.
In November, the fintech giant established a new British holding firm. This decision was perceived by some experts and other observers of what is happening in the fintech industry as a kind of evidence of preparation for a possible listing in the mentioned country.
Sebastian Siemiatkowski is very skeptical about the prospects of an IPO in Europe. According to him, the markets of Germany, Sweden, and the United Kingdom are still very small compared to the space of opportunities that exists in the United States. Separately, in this context, he noted that American investors have a better understanding of the fintech industry and technology companies.
Over the past year, Klarna’s valuation has slashed to about $6.7 billion. This is a significant decrease, taking into account the fact that the corresponding figure was at around $45.6 billion before the decline. In 2023, the company cut jobs, and office space and revised the concept of expenses. These measures were taken against the background of a change in investor opinion about the dynamic of the availability of loans during a period of rising interest rates.
It is worth noting that in December, Klarna’s valuation improved, reaching $7.85 billion. This dynamic is because the company has reported its first quarterly operating profit in four years.
Sebastian Siemiatkowski stated his desire to be sure that investors planning to interact with his brand have huge funds.
As we have reported earlier, Klarna Wins Regulatory Approval in UK.
