Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

<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. 


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

<ul>
<li>Klarna will offer 34.3 million shares at $35-$37 and is scheduled to debut on Wednesday (9/10).</li>
<li>Total revenue for the six months ended June 30, 2025 increased by $199 million, or 15% (17% on a like-for-like basis), compared to the six months ended June 30, 2024.</li>
<li>A "buy-now, pay-later" competitor, Affirm Holdings (AFRM US), has been trading extremely well since April.</li>
</ul>


Klarna will offer 34.3 million shares at $35-$37 and is scheduled to debut on Wednesday (9/10).
Total revenue for the six months ended June 30, 2025 increased by $199 million, or 15% (17% on a like-for-like basis), compared to the six months ended June 30, 2024.
A "buy-now, pay-later" competitor, Affirm Holdings (AFRM US), has been trading extremely well since April.


Klarna Group (KLAR): Commerce Provider Seeks $14b IPO Valuation After Lengthy Delay

<ul>
<li>Klarna Group plc, a first mover in the BNPL space and AI-powered fintech company, is targeting an IPO valuation of between $13B and $14B, according to Reuters.</li>
<li>A Swedish founder-led decacorn is preparing for a roadshow after Labor Day this week. They intend to raise up to ~$1B and start trading in September.</li>
<li>$13B-$14B IPO valuation is cheap vs. peers and implies ~68% discount to Affirm. Klarna’s last down round was a $800M venture round in July of 2022 at a ~$6.7B valuation.</li>
</ul>


Klarna Group plc, a first mover in the BNPL space and AI-powered fintech company, is targeting an IPO valuation of between $13B and $14B, according to Reuters.
A Swedish founder-led decacorn is preparing for a roadshow after Labor Day this week. They intend to raise up to ~$1B and start trading in September.
$13B-$14B IPO valuation is cheap vs. peers and implies ~68% discount to Affirm. Klarna’s last down round was a $800M venture round in July of 2022 at a ~$6.7B valuation.


Klarna IPO Valuation Update: $13B-$14B IPO Valuation Is Cheap Vs. Peers, ~68% Discount To Affirm

Private Markets, Angel and Secondary Investing, Sacra

Sacra

Private Markets, Angel and Secondary Investing

Bringing transparency to private markets so investors, founders, and employees can build on conviction. Sacra delivers deeply researched insights on the private companies shaping tomorrow's markets. By surfacing the data, context, and operator perspective that are missing from private markets today, we help secondary buyers and sellers price equity accurately and unlock liquidity for the people building these businesses.

Private Capital Markets

<ul><li>Varo generated $129M in gross revenue in 2023, growing 27% year-over-year from $101M in 2022.</li><li>In January 2025, Varo filed for a $55M Series G round, closing $29M with 13 investors as of February 2025.</li><li>Varo reduced customer acquisition costs by 31% in 2024.</li></ul>

Varo generated $129M in gross revenue in 2023, growing 27% year-over-year from $101M in 2022.In January 2025, Varo filed for a $55M Series G round, closing $29M with 13 investors as of February 2025.Varo reduced customer acquisition costs by 31% in 2024.

United States

Klarna is a Swedish fintech company that provides online financial services. The company provides payment processing services for the e-commerce industry.

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Klarna Group (KLAR US)

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 Group (KLAR): Commerce Provider Seeks $14b IPO Valuation After Lengthy Delay

Klarna to debut with 34.3 million shares at $35-$37, showing strong revenue growth compared to last year. Affirm Holdings trading well as a...

IPO Boutique

Klarna IPO Valuation Update: $13B-$14B IPO Valuation Is Cheap Vs. Peers, ~68% Discount To Affirm

Klarna Group plc, a leading EU BNPL fintech, targets $13B-14B IPO valuation, aiming to raise up to $1B and start trading in September under the...

Andrei Zakharov

Primer: Varo - 19 Apr 2026

Mobile banking app offering checking accounts, savings, and debit cards to consumers

Sacra

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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 Group (KLAR): Commerce Provider Seeks $14b IPO Valuation After Lengthy Delay

​Klarna to debut with 34.3 million shares at $35-$37, showing strong revenue growth compared to last year. Affirm Holdings trading well as a...

IPO Boutique

Klarna IPO Valuation Update: $13B-$14B IPO Valuation Is Cheap Vs. Peers, ~68% Discount To Affirm

​Klarna Group plc, a leading EU BNPL fintech, targets $13B-14B IPO valuation, aiming to raise up to $1B and start trading in September under the...

Andrei Zakharov

Primer: Varo - 19 Apr 2026

Mobile banking app offering checking accounts, savings, and debit cards to consumers

Sacra

Klarna to debut with 34.3 million shares at $35-$37, showing strong revenue growth compared to last year. Affirm Holdings trading well as a...

Klarna Group plc, a leading EU BNPL fintech, targets $13B-14B IPO valuation, aiming to raise up to $1B and start trading in September under the...