Feb 23, 2021
Exclusive: Klarna May Opt for Direct Listing as Private Funding Looms
This news has been received from: usnews.com
All trademarks, copyrights, videos, photos and logos are owned by respective news sources. News stories, videos and live streams are from trusted sources.
By Supantha Mukherjee and Abhinav Ramnarayan
STOCKHOLM/LONDON (Reuters) - Swedish payments firm Klarna may list on the stock market without raising money by selling new shares, its CEO told Reuters, as banking sources said the company was close to securing more private funding.
The "buy now, pay later" firm completed a $650 million funding round in September from a group of investors led by Silver Lake that valued it at $11 billion.
The banking sources, and another source familiar with the company, said it was finalising another private funding round to raise at least $500 million that could be completed within days.
Chief executive Sebastian Siemiatkowski declined to comment on that, but said a direct listing - where the company would not sell new shares and circumvent the costly marketing process of a traditional stock market listing - was a possibility.
"I think it's a very interesting concept. I know that Spotify did it successfully," Siemiatkowski said, referring to the music streaming service. "I can see it's a more modern way of making a company public ... if you hear us having an interest in it that is true because we are interested in it."
Klarna has been widely rumoured to be among a number of looming tech company listings, with bankers expecting it to complete a New York initial public offering (IPO) or a merger with a special purpose acquisition company (SPAC) - a listed vehicle created to bring private companies to market.
However, Siemiatkowski ruled out a SPAC deal.
"I'm happy to kill these SPACs rumours as I feel that's very, very unlikely. No one has yet convinced me about why that would be a preferential route," he said.
Banking sources who have been in talks with Klarna said the company had recently been moving to favour a direct listing.
"They don't need any new money from an IPO, so I can see why a direct listing makes sense for them," said one.
Direct listings are viewed by some as a potential solution to the difficulty of finding the right price in a stock market listing, especially in the tech space where many companies rise dramatically in value after listing.
Companies usually do not need to appoint investment banks for such a process, denying them the lucrative fees that come with a traditional IPO.
Klarna will still consider a traditional IPO, but is waiting for the appointment of Niclas Neglen as chief financial officer in March before getting the process started, Siemiatkowski said.
"I want to get Niclas on board, get him a chance to get into the company. And so then we'll evaluate and see what makes sense," he said.
Siemiatkowski did not rule out a 2021 listing, but said it was more likely next year.
(Reporting by Supantha Mukherjee and Abhinav Ramnarayan. Additional reporting by Arno Schuetze; Editing by Rachel Armstrong and Mark Potter)
Copyright 2021 Thomson Reuters.
News Source: usnews.com
GameStop soars 104% after announcing the resignation of its CFORelated news
GameStop soars on Wall Street again. However, this time the first origin of the increases was not in a conspiracy of foreros to save the company, although they did appear on the scene in the final stretch of the session. Shares of the video game store chain soared 103.9% becoming a target for speculation once it has announced the resignation of its current CFO.
GameStop shares marked Intraday closing highs at $ 91.71 on the New York Stock Exchange this Wednesday. Although very far from the 483 dollars per title that came to be seen in the heat of the upward assault of the Reddit foreros a few weeks ago, its graph did not move around these heights for 10 days.
The trigger for the buying bets that have raised the company’s price this time had its own name: Jim Bell. Current Executive Vice President and Chief Financial Officer will leave both positions on March 26. And the market hopes that his replacement will have the formula so that, in tune with CEO and CEO George Sherman, the chain of stores can return to the path of profitability.One month of searching
Now, GameStop has a little over a month to find a replacement to Bell. For this task, it will have the advice of a firm specialized in recruiting executives, as explained by the listed company itself. In this sense, the company seems willing to take on nominations both from its own staff and from outsiders.
The market seems to discount the best of the scenarios for the US company again. However, his directive He already has a plan B in case the relief does not arrive on time. In this case, it would be Diana Jajeh, Vice President and Chief Accounting Officer, who would assume the position of financial management on an interim basis.
Meanwhile, another date remains fixed on the calendar for investors who more or less speculatively have entered GameStop in recent weeks. It is about April 1, when the publication of your next quarterly accounts. The market consensus expects a profit of $ 1.51 per share, which would significantly improve the figure of $ 1.27 the previous year.