How to buy Klarna shares when it goes public

Here's everything we know so far about the Klarna IPO.

Klarna, a buy now, pay later e-commerce fintech company, is expected to conduct an initial public offering.

There's no news yet about how much the stock will cost when it goes public. No date has been set for when the stock will be publicly available.

How to buy shares in Klarna when it goes public

Once Klarna goes public, you'll need a brokerage account to invest. Consider opening a brokerage account today so you're ready as soon as the stock hits the market.

  1. Compare share trading platforms. Find a platform that suits your investing style. In this case, you might need a brokerage providing access to newly listed stocks. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Create an account using basic personal details along with your ID and bank information. You can make a deposit with a bank transfer, credit card or debit card.
  3. Search for Klarna. Find the stock by name or the ticker symbol .
  4. Buy Klarna shares. Once shares become available on your platform, decide how much stock you want to buy and create an order.

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What we know about the Klarna IPO

The buy now, pay later (BNPL) e-commerce giant Klarna is expected to go public sometime in 2024. There’s no official date, but the CEO, Sebastian Siemiatkowski made a recent statement saying that it’s going to happen quite soon.

Klarna is a Swedish fintech company, but it’s expected the initial public offering will take place in the US, because that’s where a lot of its sales come from. And, the US is still the obvious choice for technology companies looking to raise as much money as possible.

Klarna’s main offering allows for customers to purchase products through major retailers, but with the ability to split or defer the payment. In the UK, you can use it to pay in 3 instalments or pay 30 days later.

The valuation for Klarna got slashed by around 85% to $6.7 billion in a 2022 funding round due to harsher market conditions. This is obviously much lower than a previous valuation of $46 billion.

There are over 150 million active consumers using Klarna’s service to buy from over 500,000 merchants - totalling more than 2 million transactions a day.

What we know about Klarna's balance sheet

Officially known as Klarna Bank, this alternative to credit card issuers now has more than 190,000 merchant partners worldwide. In the quarter ending September 2020, the company reported net operating income growth of $742 million, a 37% increase from the previous period. The quarter has other highlights as well.
  • 160% growth in year-over-year mobile app downloads and 2 million monthly active app users by the end of October
  • 21 million new customers worldwide
  • 57,000 new retail partners including Etsy, Ralph Lauren and Express.

How do similar companies perform?

It's impossible to predict how any stock will perform — and IPOs can be particularly volatile. But evaluating the performance of companies like Klarna can be useful in determining how the market is performing and whether now is a good time to invest in this industry. Select a company to learn more about what it does and how its stock performs, including market capitalisation, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.

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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

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