Klarna edges closer to $20bn float - report
Buy now pay later firm Klarna has reportedly cleared a crucial hurdle on its journey towards a stock market flotation expected to value it at as much as $20bn (£15.9bn).
According to Sky News, the Stockholm-based consumer credit provider has secured backing from shareholders and regulators to establish a new UK-registered holding company.
Investors were informed earlier this week that the approvals, part of preparations for a high-profile initial public offering (IPO), would result in the exchange of their shares in Klarna Holding for Klarna Group plc stock taking place in about ten days' time.
It was understood that investment banks have yet to be appointed for a New York flotation, with people close to the company saying that the first quarter of 2025 - after the next US presidential election - now looked to be the likeliest window for it to take place.
Klarna has previously declared itself in favour of "proportionate" regulation of the sector.
Klarna launched last year what it described as Britain's first 'credit opt-out' product to give consumers greater control of their finances.
It said the idea had been suggested by Andrew Griffith, the then City minister, during a meeting with Mr Siemiatkowski.
A Klarna spokesperson told Sky News on Tuesday: "Following our announcement last year, yesterday we notified investors that we have received the necessary investor and regulatory approvals necessary to set up a new UK-based holding company."