Klarna’s (KLAR) initial public offering may happen “quite soon” in the U.S., Chief Executive Officer Sebastian Siemiatkowski told BNN Bloomberg.
The Swedish fintech, once Europe’s most valuable startup, sees the country as a natural choice for a public offering because it is Klarna’s largest market by revenue. The fintech had been expected to go public in markets including the U.S., UK or Sweden. In November, Klarna set up a UK holding company.
The markets in Germany, UK and Sweden “are still very small compared to the U.S.,” the executive told BNN Bloomberg. “In the U.S., there is a bigger understanding for fintech and tech companies among the investor base.”
Klarna’s valuation fell to $6.7B last year from about $46B and cut costs as investors reconsidered the growth of easy credit at a time of rising interest rates, Bloomberg said.
Last year was a slow one for initial public offerings and 2024 is expected to see several well-known companies going public, including China’s fast-fashion group Shein, which filed confidentially last year. Reddit (REDDIT) selected banks almost a year ago to help it prepare for an IPO and Kim Kardashian’s SKIMS clothing brand is in discussions to go public as early as this year.