Klarna to establish UK holding company in preparation for billion-dollar IPO

Klarna, the Buy Now, Pay Later (BNPL) giant, plans to establish a new holding company in the UK for its upcoming IPO.
CEO Sebastian Siemiatkowski seeks approval to create a new legal entity above the existing corporate structure.
The new UK holding company aims to enhance the chances of a successful IPO by leveraging the UK’s legal, regulatory, and capital markets framework.
Klarna is considering a listing in the first half of the next year, possibly via a direct listing.
No firm decision on the IPO timing or location has been made, but restructuring has been in progress for over a year.
Klarna chose the UK for its well-respected global financial market and familiarity to a broad, global investor base.
The UK’s favorable regulatory environment and familiarity with fintech markets may attract international investors.
Klarna aims to surpass its previously revised $6.7 billion valuation with this strategic move.
The UK-registered holding company’s proximity to the London Stock Exchange and global counterparts is advantageous for future listing decisions.
Klarna Holding will maintain its regulated status under the direct supervision of the SFSA and hold a Swedish banking license.