To go public at the moment is like a roller coaster with a serious restriction of height – only the highest companies can buckle up for the trip.
Klarna, the Swedish Fintech -Einhorn, which later paid itself, was submitted last week to “clear” to the stock exchange on the New York stock exchange under the ticker. And Klarna seems to meet the height request, so to speak -the company reported in 2024 income of US dollars (compared to about 2.3 billion US dollars in 2023) plus 2024 net profit of $ 21 million. On Monday, Klarna followed its F-1-not an S-1 because the company is based in Stockholm-and announced that it took over an exclusive merchant wage for later with a later contract with the contract WalmartA blow to reaffirm it.
“Klarna is in a unique position with great sales growth and the latest partnership with Walmart,” said Reena Aggarwal, director of the PSAROS Center for Financial Markets and Politics at Georgetown University. “Even if this IPO is successful, it is not clear that IPOS will achieve a similar result in a broader sense.”
It is important to remember that Klarna has come here at will. The company’s top rating in 2021 was $ 45.6 billion and then fell to a low point of $ 6.7 billion in 2022 in response to macroeconomic conditions. Since then, the company’s assessment has grown gradually, which has been achieved on the secondary markets of $ 15 billion.
“Klarna was one of the first companies that take ‘medicine in 2022 and significantly reduce their evaluation,” said Greg Martin, managing director of Rainmaker Securities. “It was a bitter pill for swallowing, but shows a careful reset to create a positive way for an IPO. I think this will serve you well, and investors believe that they will invest in long -term sustainable growth stories. “
“An important aspect of the submission of Klarna is her turning point – the translation of considerable losses to profitability before her public debut,” said Rudy Yang, senior analyst of PitchBook Emerology, via e -Mail. “This reflects the developing expectations of the market. However, their consumer credit losses represent a significant part of their expenses and could further influence a potential economic down cycle.”
The success of Klarna could have significant ripple effects, say private markets.
“A strong debut from Klarna could encourage profitable or almost profitable companies to go public after stabilizing macro.
These ripple effects could be particularly clearly felt in FinTech.
“Keynas Börsengang is a critical test case for the FinTech sector, which has experienced a significant drought in public outputs in recent years,” said Yang von Pitchbook. “For the context, FinTech Public listings generated a VC exit value of 222.7 billion US dollars in 2021. In the past three years, they have only generated $ 28.7 billion.”
The IPO vürre and the difficult times of FinTech both summarized the end of the Zirp -ära (Zero Zinspolitik), which led to higher interest rates and difficult trends in consumer expenses.
“Investors and Fintech companies will carefully observe the public market debut, since the evaluation of the company and the investor reception will set up a benchmark that could either accelerate or further delay the next wave of FinTech,” added Yang via e -Mail.
I know I know. The essential question remains: Is the IPO window open? CoreWeave, for example A few big question marks, but recently submitted to go to the stock exchange.
“The IPO market was open, but it is very difficult to do stock exchange approaches if the last week there is uncertainty and market volatility,” said Aggarwal from Georgetown Assets. “Only the strongest companies can go to the stock exchange in this environment, and even they can receive lower ratings than usual. We may have to wait for the markets to calm down before the IPO window opens completely.”
Until then, companies have to be damn large to drive the IPO roller coaster ride. And as soon as you are on the way, you will probably be thrown for a loop or even for a “loop-de loop”. So keep your arms, feet, legs, submissions and financial data in the way.
Icymi …The SEC has given new guidelines that make it easier for private equity and VC companies to publicly advertise their means and to check accredited investors on the basis of high minimum investments. You can Read more from Axios about the latest information on Rule 506 (c) here. The Google Wiz offer is elsewhere Reports This time for (reported) $ 33 billion.
See you in the morning,
Allie Garfinkle
X: @Agarfinks
E-mail: Alexandra.garfinklinke@fortune.com
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This story was originally on Fortune.com