Klarna CEO: IPO Launch Location Decision Still Uncertain

Klarna CEO: Klarna reported the location of the company’s IPO is not set yet as the UK wants to change both the listing rules and the regulations on the sector.

In a recent chat with the Sunday Times,  the CEO of Klarna, Sebastian Siemiatkowski said that the company is likely to launch its IPO in the US because the UK’s financial watchdog has made the rule harder for the BNPL lenders.

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Sebastian Siemiatkowski added, “It’s more likely that Klarna would list in the US, but are we going to consider London? Are there elements of how you guys are thinking about changing the rules around listings that could make it more attractive for us? Absolutely.”

A recent UK listing review led by Chancellor Rishi Sunak suggested changes to the listing rules and the prospectus system. It was believed that this positive way of bringing the UK stock market stable with more non-UK financial centers.

Yahoo Finance UK reported that the founder of Babylon Health told them last week that the company is likely to list in New York rather than in London as the capital markets there are “more innovative” and American investors are widely open to tech companies that are growing rapidly.

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As per the reports, more than 13,500 stores in the UK use Klarna. These stores include Asos (ASC.L), H&M, and JD Sport.

The most recent funding round the company valued at $51bn (£36bn), so whatever its picks could be a lucky one.

In 2020, around 5 million people in the UK have used BNPL services.

Siemiatkowski further added, “I’m not that worried — I feel like I am on the right side of things. It would be worse if I was on the wrong side trying to protect something.”

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