Klarna’s IPO Is About to Price. What Investors Should Know.

Swedish fintech Klarna said it plans to sell 34.3 million shares in the IPO at between $35 and $37 each. (Stefani Reynolds/Bloomberg)

Klarna, the Swedish buy-now, pay-now service provider, is expected to announce its initial public offering price after the closing bell Tuesday.

A total of 34.3 million shares will begin trading on the New York Stock Exchange under the ticker KLAR on Wednesday. This makes up roughly 9% of a total 378 million shares outstanding after the offering.

Klarna’s underwriters plan to price the company’ shares in a range of $35 to $37 apiece, according to a filing with the U.S. Securities and Exchange Commission. The fintech could raise $1.3 billion from the sale if the stock sells at the high end of the range, which would value Klarna at roughly $13.6 billion.

The development comes amid a hot market for initial public offerings. In the past few months, tech companies including stablecoin issuer Circle Internet Group, software maker Figma , and cryptocurrency exchange Bullish have made their debuts. Gemini Space Station, another cryptocurrency play, is set to go public later this week.

Klarna was founded in 2005 as a BNPL service provider, but it has since expanded into other areas in an effort to take on the banking sector. Today, its product portfolio includes both a credit and debit card. The company also holds a full banking license in the European Union.

While the fintech filed registration documents for its IPO in March, preparing to make its trading debut, President Donald Trump’s “Liberation Day” tariffs disrupted those plans. Markets were thrown into disarray in April when Trump unleashed a hailstorm of tariffs on U.S. trading partners.

Klarna may debut to some investor scrutiny. The company made headlines in May when it revealed that customers were defaulting on their loans, which contributed to a first-quarter net loss of $99 million. In the second quarter, that metric swelled to $52 million from $18 million a year earlier.

At the same time, the company has been expanding globally. Klarna works with merchants in 26 countries, with the U.S. considered its largest market. CEO Sebastian Siemiatkowski said in a news release that a record number of transactions were paid early or on time in the second quarter.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com