Klarna pushes for £12bn float with new British firm
Klarna, the ‘buy now, pay later’ finance giant, is setting up a new British holding company, according to media reports.
This is the latest step from Klarna as it clears the path to a stock market flotation that could value it at more than $15bn (£12.1bn) – in line with New-York listed rival Affirm Holdings.
Sky News has reported that the Stockholm-based consumer credit provider told investors it has kicked off preparatory work ahead of a listing – which is expected to be launched as soon as the first half of next year.
Its founder and chief executive Sebastian Siemiatkowski announced in August that three key conditions – becoming established in the US, having a sustainable business model and significant growth potential – for an initial public offering (IPO) had now been met.
The new holding company does not guarantee Klarna will opt to float in London.
It could still choose New York to list instead, in another loss for the City after chip designer ARM Holdings decided to move Stateside.
In a statement issued to Sky News, a Klarna spokesman said: “This is an administrative change that has been in the works for over 12 months and does not affect anyone’s roles, nor Klarna’s Swedish operations.
“Klarna Holding will continue to be the regulated financial holding company under the direct supervision of the SFSA [Swedish financial regulator] and we will continue to hold a Swedish banking licence.
“This entity would be registered in the UK.”
The move for a British holding company requires shareholder approval, which is expected to take place shortly.
Klarna’s corporate reorganisation comes as the UK government veers away from a crackdown on the ‘buy now, pay later’ sector.