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Investing.com -- Klarna, a Sweden-based online payments and specialty lending provider, has paused its planned initial public offering (IPO), becoming the latest company to do so following the Trump administration’s recent tariff announcement. The company, which had planned to market its shares for the offering on Monday, decided to postpone this week, according to a report from the Wall Street Journal, citing sources familiar with the situation.
Similarly, online ticketing platform StubHub has also decided to delay its IPO plans. The company and its advisers were concerned that investors might not have sufficient time to meet with them, leading to the cancellation of their planned roadshow.
Klarna’s primary service, a buy-now-pay-later feature, is integrated within online checkout pages for retailers. The company, which filed IPO documents earlier this year to list its shares on the New York Stock Exchange (NYSE), has been aiming for a valuation of $15 billion. This is a significant increase from its last valuation in 2022, which was $6.7 billion.
Meanwhile, shares of Affirm, one of Klarna’s main competitors in the U.S., have fallen by 46% this year, including a 15% drop on Friday. This has resulted in Affirm’s market valuation decreasing to just over $12 billion, which is lower than Klarna’s target valuation for its IPO.
Klarna has received backing from a variety of high-profile investors, including Sequoia Capital, Abu Dhabi’s sovereign-wealth fund Mubadala Investment, and the Canada Pension Plan Investment Board.
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