Swedish FinTech is reported to have delayed its planned IPO because of the uncertainty caused by President Trump’s tariffs.
Global stock markets went into free fall in the wake of Trump’s announcement although there’s evidence that the markets may be stabilising this morning.
However, that’s not been enough to prevent Swedish buy-now-pay-later (BNPL) pioneer Klarna from putting its long-awaited IPO in New York on hold.
In November the company announced it had chosen New York over London for its planned stock market flotation.
At the time there was speculation that Trump’s second US presidential term could see more firms chose the US for IPOs but the opposite seems more likely with US tech stock being one of the biggest casualties of his pro-tariff agenda.
Although Klarna hadn’t revealed a planned date for its $15bn IPO, it was widely expected to take place in April but that prospect looks more remote than ever.
According to the Wall Street Journal, a roadshow ahead of the IPO was set to begin on Monday but these plans are now on hold as markets continue to tumble.
Richard Goldman, chairman of the executive transaction group at the investment firm Redeye, told Sifted: “The IPO window is as closed as it can be. Right now, you simply can’t price a company.”
Klarna has not commented publicly on reports of them delaying their planned IPO.
Klarna was founded in 2005 and has a significant presence in the UK, with 18 million UK customers and over 31,000 merchants.
Tech stock, including PayPal, Tesla, Apple and SoFi Technologies, have all nosedived in the last week, spooking investors.