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If you read our IPO coverage last week, and we hope you did…
We talked about how one upcoming IPO looked good. Very good.
Let’s talk about Klarna.
Klarna, the Swedish fintech powerhouse trading under the ticker KLAR, absolutely crushed its NYSE debut today.
Shares rocketing to nearly 50% gains from the IPO price, closing regular trading near 46 after hitting a high of $57.20 early on.
Priced at 40 last night, Tuesday, it scooped up $1.4 billion in its raise, and nailed a $15 billion valuation right out the gate.
That’s huge, especially after spring’s tariff chaos…
But demand was wild, it was literally oversubscribed 25 times, with heavy hitters like Sequoia making an absolute killing today.
Get this…
Of the roughly 47 million shares of Klarna traded today, only 5 million were sold by the company.
The rest of the big sellers included existing investors like Sequoia Capital, Silver Lake, BlackRock, and some others as well.
However, while some shares were cashed out, most of the above are still holding a majority of their stakes.
Do they believe higher stock prices are coming soon?
Clearly for the retail trader…
FOMO kicked in hard; you know that fear of missing out, like when everyone’s piling into something hot and you’re worried you’ll be left watching from the sidelines as your pals cash in big.
Folks were terrified of missing the train as left the station with traders yelling “this is the one.”
Klarna’s been building this payments empire for two decades now, starting back in the early 2000s, turning shopping into something ridiculously simple. No need for cards, just tap and sort out payments later.
It’s pulled in millions of users across Europe, the U.S., and beyond, especially nailing it with Gen Z folks who treat online buys like second nature.
The IPO world’s been busy but KLAR nailed the timing like a pro. They priced it low to build that early buzz, and underwriters like Goldman Sachs fine-tuned the float perfectly.
Speaking of Goldman, those guys are absolute legends; they’re one of the biggest underwriters out there and they consistently deliver these killer pops on IPOs.
Think back to Snowflake or Uber’s launches; Goldman handpicks the strong ones and turns them into day-one surges almost every time.
They dig deep in their vetting, tighten up the underwriting, and bam we got fireworks from the opening bell. With them steering this, it’s no shock KLAR blasted to 52 so quickly.
Retail traders on X were losing their minds before the market even opened, raving about how addictive the app is—you’re basically swiping through purchases like you’re liking posts on TikTok.
The stats just jumped out: 1.4 billion raised, a 15 billion valuation, and that 50%-ish surge that had TV anchors all hyped up. Analysts are already floating price targets over 60, dubbing it Europe’s breakout hit.
Early investors like Sequoia and TCV pocketed billions but hung onto enough shares to show they’re still believers. Klarna’s navigated some U.S. regulatory hurdles in the past—buy-now-pay-later setups can draw some scrutiny—but today felt like a solid victory lap over the doubters.
But enough out about what already happened…
Looking ahead, expansion’s the name of the game: pushing further globally while dealing with evolving rules around those payment plans.
Sure, competitors are out there sniffing around, but e-commerce is still exploding, with online sales hitting 30% in some markets. Klarna’s got that edge with AI tweaking personalized payments and a user experience that keeps people coming back.
Chatter on X is comparing KLAR to Stripe, but with more flair.
Sequoia’s partial cash-out? Total smart move—locking in profits without bailing entirely. At its heart, this isn’t about pushing flashy debt; it’s all about that freedom to snag what you want now and handle the bill on your terms.
Users dig the effortless feel, particularly the younger crowd. The buzz today was insane and crowds jumped in fast.
Will that 15 billion valuation stick or keep climbing?
If they crush the growth plans, sky’s the limit. Europe was due for a win like this, and Wall Street’s clearly buying into a future where shopping stays instant and hassle-free.
No matter what tomorrow brings for KLAR, that massive 50%-ish jump screams staying power and it screams IPO Stream will get you a good pop.
Stay tuned, we’re going to cover some IPOs BEFORE they go public and let you in on our ideas as to what will happen to them both short term and long.
-Tim
How 433 Investors Unlocked 400X Return Potential
Institutional investors back startups to unlock outsized returns. Regular investors have to wait. But not anymore. Thanks to regulatory updates, some companies are doing things differently.
Take Revolut. In 2016, 433 regular people invested an average of $2,730. Today? They got a 400X buyout offer from the company, as Revolut’s valuation increased 89,900% in the same timeframe.
Founded by a former Zillow exec, Pacaso’s co-ownership tech reshapes the $1.3T vacation home market. They’ve earned $110M+ in gross profit to date, including 41% YoY growth in 2024 alone. They even reserved the Nasdaq ticker PCSO.
The same institutional investors behind Uber, Venmo, and eBay backed Pacaso. And you can join them. But not for long. Pacaso’s investment opportunity ends September 18.
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