US IPOs and Secondary Offerings, IPO Boutique

IPO Boutique

US IPOs and Secondary Offerings

For more than 20 years, we have been providing research, analysis, commentary and ratings on US Equity Capital Markets to institutional investors (US IPOs and Secondary Offerings). Our vast network of contacts across the Equity Capital Markets and attention-to-detail sets us apart from our competitors.

Since 2012, we have achieved a successful hit rating on 89% of Buy-rated IPOs. The collective “Buy” ratings averaged a first trade of 16.3% above issue.Our Neutral Rated Deals averaged just 2% above the issue price at first trade.

Our written research includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

In addition, we provide a high-touch premium desk access which includes analyst access, as well as real time insights on US IPOs as well as secondary offerings.

IPOs and Secondary Offerings

Equity Capital Markets

<ul>
<li>Commerce network Klarna Group will offer 34.3 million shares at $35-$37 and to debut on Wednesday (9/10).</li>
<li>The direct comp, Affirm, posted a strong quarter but some of Klarna's metrics are on par or potentially stronger than its competitor. </li>
<li>The valuation, both relative to peers and compared with prior “bloated” rounds, looks far more reasonable this time.</li>
</ul>


Commerce network Klarna Group will offer 34.3 million shares at $35-$37 and to debut on Wednesday (9/10).
The direct comp, Affirm, posted a strong quarter but some of Klarna's metrics are on par or potentially stronger than its competitor. 
The valuation, both relative to peers and compared with prior “bloated” rounds, looks far more reasonable this time.


Klarna Group (KLAR): Discounted Down-Round Valuation Draws Interest, Multiple-Times Oversubscribed

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Affirm Holdings, Inc. delivered a robust performance in its fourth quarter of fiscal 2025, marking significant progress in several key areas.</li><li>The company reported a record in key metrics, despite it not being the traditional peak quarter, indicating strong business momentum.</li><li>Affirm's growth is attributed to its continued focus on underwriting precision and consumer engagement, alongside significant contributions from its 0% APR products that are effectively attracting new customers and encouraging repeat usage.</li></ul>

Affirm Holdings, Inc. delivered a robust performance in its fourth quarter of fiscal 2025, marking significant progress in several key areas.The company reported a record in key metrics, despite it not being the traditional peak quarter, indicating strong business momentum.Affirm's growth is attributed to its continued focus on underwriting precision and consumer engagement, alongside significant contributions from its 0% APR products that are effectively attracting new customers and encouraging repeat usage.

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>Klarna shares are set to start NYSE trading on 10 September; the issue price range implies a market capitalisation of USD12.8bn to USD13.6bn; we believe that its valuation looks underwhelming</li>
<li>The Klarna IPO valuation versus its peers does, however, show Affirm’s very stretched valuation and we downgrade it to a sell; we upgrade Kakao Pay to a neutral from sell</li>
<li>We keep PagSeguro, PayPal and Nexi on the buy list for their value credentials; we believe that PayPal is also the best value of the major BNPL players</li>
</ul>


Klarna shares are set to start NYSE trading on 10 September; the issue price range implies a market capitalisation of USD12.8bn to USD13.6bn; we believe that its valuation looks underwhelming
The Klarna IPO valuation versus its peers does, however, show Affirm’s very stretched valuation and we downgrade it to a sell; we upgrade Kakao Pay to a neutral from sell
We keep PagSeguro, PayPal and Nexi on the buy list for their value credentials; we believe that PayPal is also the best value of the major BNPL players


Klarna IPO (KLAR US) - Underwhelming Valuations Against Key Comparables

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Klarna Group plc, a Swedish fintech giant and largest BNPL player in European Union, is expected to price $1B+ initial public offering next week.</li>
<li>The company’s amended F-1 puts the initial price range per share at $35 to $37, implying a market cap of ~$13.6B at midpoint, down ~70% from peak valuation of ~$46B. </li>
<li>I think risk/reward profile is favorable given large consumer and merchant scale, expansion into digital retail banking services and potential revenue growth re-acceleration into 2026.</li>
</ul>


Klarna Group plc, a Swedish fintech giant and largest BNPL player in European Union, is expected to price $1B+ initial public offering next week.
The company’s amended F-1 puts the initial price range per share at $35 to $37, implying a market cap of ~$13.6B at midpoint, down ~70% from peak valuation of ~$46B. 
I think risk/reward profile is favorable given large consumer and merchant scale, expansion into digital retail banking services and potential revenue growth re-acceleration into 2026.


Klarna IPO Valuation Update: Risk/Reward Profile Looks Good, Sequoia Stands To Be The Largest Winner

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Klarna is getting ready to complete its IPO on the New York Stock Exchange.</li>
<li>Klarna is offering 34.3 million shares at $35 to $37 per share. At the high end of the IPO price range, the company would be able to raise $1.27 billion.</li>
<li>Our base case valuation is 5.4% lower than the low end of the IPO price range. Given the lack of upside, we have a Negative View of the Klarna IPO. </li>
</ul>


Klarna is getting ready to complete its IPO on the New York Stock Exchange.
Klarna is offering 34.3 million shares at $35 to $37 per share. At the high end of the IPO price range, the company would be able to raise $1.27 billion.
Our base case valuation is 5.4% lower than the low end of the IPO price range. Given the lack of upside, we have a Negative View of the Klarna IPO. 


United States

Affirm Holdings, Inc. is a financial technology company. The Company builds platform for digital and mobile-first commerce. Affirm Holdings offers financial services tool that allows consumers to purchase goods and services. Affirm Holdings serves customers worldwide.

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Affirm Holdings (AFRM US)

Klarna Group (KLAR): Discounted Down-Round Valuation Draws Interest, Multiple-Times Oversubscribed

Backed by major venture capital investors a steep discount at IPO may attract both new buyers and existing holders for Klarna Group's IPO.

IPO Boutique

Affirm Holdings: Strategic PSP

Affirm Holdings, Inc. delivered a robust performance in its fourth quarter of fiscal 2025, marking significant progress in several key areas. The...

Baptista Research

Klarna IPO (KLAR US) - Underwhelming Valuations Against Key Comparables

Klarna is due to IPO, with its valuation underwhelming relative to peers; we downgrade Affirm to a sell due to very rich valuations, and we stick...

Victor Galliano

Klarna IPO Valuation Update: Risk/Reward Profile Looks Good, Sequoia Stands To Be The Largest Winner

Klarna Group plc is expected to go public next week. In my insight, I discuss IPO valuation, valuation comps and set a 12-month target price for...

Andrei Zakharov

Klarna IPO Valuation Analysis

Klarna is getting ready to complete its IPO. Our base case valuation is 5.4% lower than the low end of the IPO price range. Given the lack of...

Douglas Kim

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Klarna Group (KLAR): Discounted Down-Round Valuation Draws Interest, Multiple-Times Oversubscribed

Backed by major venture capital investors a steep discount at IPO may attract both new buyers and existing holders for Klarna Group's IPO.

IPO Boutique

Affirm Holdings: Strategic PSP

Affirm Holdings, Inc. delivered a robust performance in its fourth quarter of fiscal 2025, marking significant progress in several key areas. The...

Baptista Research

Klarna IPO (KLAR US) - Underwhelming Valuations Against Key Comparables

​Klarna is due to IPO, with its valuation underwhelming relative to peers; we downgrade Affirm to a sell due to very rich valuations, and we stick...

Victor Galliano

Klarna IPO Valuation Update: Risk/Reward Profile Looks Good, Sequoia Stands To Be The Largest Winner

Klarna Group plc is expected to go public next week. In my insight, I discuss IPO valuation, valuation comps and set a 12-month target price for...

Andrei Zakharov

Klarna IPO Valuation Analysis

Klarna is getting ready to complete its IPO. Our base case valuation is 5.4% lower than the low end of the IPO price range. Given the lack of...

Douglas Kim

Klarna is due to IPO, with its valuation underwhelming relative to peers; we downgrade Affirm to a sell due to very rich valuations, and we stick...