Klarna, the renowned ‘buy now, pay later’ financial powerhouse, is taking a significant stride in its journey toward a stock market flotation. Recent reports indicate that the company is in the process of setting up a new British holding entity. This move comes as Klarna works towards a potential valuation exceeding $15 billion (£12.1 billion), aligning it with its New York-listed counterpart, Affirm Holdings.

According to Sky News, Klarna, the Stockholm-based consumer credit provider, has informed its investors about initiating preparatory steps in anticipation of the forthcoming listing. This initial public offering (IPO) is anticipated to be launched in the first half of the upcoming year.

Klarna’s founder and CEO, Sebastian Siemiatkowski, had announced in August that the essential prerequisites for an IPO, which included establishing a robust presence in the United States, possessing a sustainable business model, and demonstrating substantial growth potential, have all been met.

While the establishment of a new holding company is a noteworthy development, it does not guarantee that Klarna will choose London as the venue for its stock market debut. The company may still opt for New York, thereby marking another setback for the City, which recently witnessed chip designer ARM Holdings relocating to the United States. Read More