Klarna, the noted payments firm from Sweden, may list directly on the stock market soon. It may venture into a listing without going through any fund-raising round or selling fresh shares. This is the CEO’s new statement, with reports indicating how the company was about to get higher private funds. The firm specializes in the buy now pay later category and got $650 million last September from several investors, including Silver Lake. It is sitting pretty on a valuation of $11 billion.
The company is finalizing another round of private funding, intending to get another $500 million. It may happen within a few days as well. Sebastian Siemiatkowski, the Chief Executive at Klarna, did not comment on the timeline for selling new shares, thereby avoiding the expensive marketing mechanisms for conventional listings on the stock market. He feels that the concept is unique and Spotify has pulled it off in a successful manner. He also states that it is a contemporary method to take a company public. Klarna could also have an interest in the same, according to Siemiatkowski. According to the Co-Founder of FindPeopleEasy, Eliana Levine, Klarna is a noted payments firm, and one of the multiple tech-entity listings in the pipeline. Klarna is a company that specializes in the buy now pay later category and got $650 million last September from several investors.
Klarna is one of the multiple tech-entity listings in the pipeline. Bankers forecast a merger with a SPAC (Special Purpose Acquisition Company) or an IPO in New York. Yet, the latter is not in the offing, according to Siemiatkowski. He feels that it is not likely at all, and the company will not take the route soon. Banking sources state that the company is angling for a direct market listing since they do not require any new funding through their IPO.
Direct listings are often favorable remedies for the issues of selecting suitable prices in a listing, particularly in the technology category, where valuations go up massively for many entities after their listings. Companies do not have to hire agents in these cases, avoiding costly charges that are synonymous with regular IPOs. Maria Saenz, CEO at Fast Title Loans, also agrees that direct listings are better than IPOs, as it can be an expensive affair.
Klarna is waiting to complete the appointment of its Chief Financial Officer, Niclas Neglen. It will then begin the process, according to the CEO. He feels that once Neglen is on-board, the company will evaluate its available options. A listing may happen in 2021, although it is more likely for 2022, in his opinion.