Klarna Considers Secondary Sale to Boost IPO Prospects
Hey FinTech Fanatic!
Klarna, the Swedish “buy now, pay later” firm, is preparing for a major IPO next year. Before that, it is exploring a secondary share sale to see if investors value it above its last valuation of roughly $7 billion.
Goldman Sachs is advising the company on this potential share sale, which could value Klarna at $10 billion or more.
Klarna’s secondary sale would allow it to establish a new valuation ahead of its IPO. The company had a peak valuation of $46 billion in 2021, which dropped by 85% the following year.
BlackRock, a major investor, has increased the value of its Klarna shares by 59% since last year, valuing the company at $9.5 billion. This secondary sale could help ease pressure on current shareholders before the IPO.
Other tech firms, such as British FinTech Revolut, are also preparing for IPOs and conducting secondary sales.
A higher valuation from this sale would enhance Klarna’s reputation after recent internal conflicts within its board, leading to leadership changes.
Cheers,
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