Investors are rushing to secure shares of Klarna Group Plc as the Swedish buy-now-pay-later giant prepares for its pricing debut late Tuesday. Orders have exceeded supply by at least eight times, Bloomberg reported, signaling strong demand.
Klarna is selling 34.3 million shares, with more than 80% coming from early backers. The IPO is expected to price at $37 per share, the top of its marketed range, giving the company a market value of about $14 billion — roughly half of rival Affirm Holdings Inc., valued at over $28 billion.
Analysts say the discount may appeal to investors seeking growth opportunities in fintech. While Klarna’s revenue rose 21% in Q2 to $823 million, Affirm’s climbed 33% to $876 million, with stronger profitability. Klarna’s average loan size is smaller, about $101 per purchase, compared to Affirm’s $276, reflecting their different lending models.
Despite these differences, analysts argue Klarna’s lower valuation could be attractive. “The discount that Klarna is going out with versus Affirm is an attractive one for IPO investors,” said Roth Capital’s Rohit Kulkarni.
Klarna emphasized in its roadshow that it has a diversified and sustainable revenue model, with balanced fees from both consumers and merchants, alongside rising advertising income.