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Klarna’s US IPO: A Catalyst For UK Fintech Listings

The stage is set as Klarna, the renowned name in buy-now pay-later services, gears up for its US initial public offering. This move could reignite the stagnating UK fintech market, which has seen a significant slowdown in technology listings. According to experts, Klarna’s listing on the New York Stock Exchange is a beacon for other fintech companies looking for public market opportunities once again.

But why now? Klarna tried to go public in 2021 but faced investor hesitation due to rising interest rates and economic volatility. Originally valued at $45.6 billion, Klarna’s worth plummeted to $6.7 billion in 2022. Now, with projections estimating a valuation of at least $15 billion, Klarna’s IPO, anticipated in early April, is drawing attention as a harbinger of change for the fintech sector.

James Wootton of Linklaters, a firm that successfully advised Wise on its 2021 London IPO, asserts that a successful high-profile IPO can be a robust strategy for growth and liquidity for fintech firms struggling in the current climate.

The numbers tell a story: Back in 2021, 101 fintech companies raised a staggering $296.86 billion globally through IPOs. Subsequently, from 2022 to 2024, 86 firms managed only $32.76 billion. Klarna’s move raises hopes for another boom.

Tim Levene, CEO of Augmentum, a UK-listed fintech investment fund, mentions that the market views Klarna as a solid benchmark for future fintech IPOs, expecting it to spearhead a series of successful listings.

Prominent Fintechs Eyeing Their Next Moves

Names like Monzo, Starling, Zilch, and Ebury circle the IPO arena. Zilch, a competitor in the buy-now pay-later space, aims for a 2026 float under CEO Philip Belamant’s guidance.

Ebury, part-owned by Banco Santander, is preparing for a London listing as early as June, seeking a valuation of 2 billion pounds.

Even Revolut and Zopa, although non-committal on immediate IPO dates, remain poised for future listings. These companies, possessing strong valuations and liquidity, can choose their opportune moment.

The conversation about the preferred IPO venue is ongoing, with Klarna’s decision to list in the US likely to amplify this debate. The London Stock Exchange continues to reach out to fintech companies such as Zilch as potential venues come to the fore.

In the world of investment and global trade and beyond, eyes will closely watch Klarna as a bellwether for market dynamics and investor confidence in fintech industries.

Electric Vehicle Leaders Urge EU To Maintain 2035 Zero Emission Mandate

Industry Voices Emphasize the Importance of Commitment

Over 150 key figures from Europe’s electric car sector, including executives from Volvo Cars and Polestar, have signed a letter urging the European Union to adhere to its ambitious 2035 zero emission goal for cars and vans. These industry leaders warn that any deviation could hamper the progress of Europe’s burgeoning EV market, inadvertently strengthen global competitors, and weaken investor confidence.

Evolving Perspectives Within the Automotive Community

This call comes in the wake of a contrasting appeal issued at the end of August by heads of European automobile manufacturers’ and automotive suppliers’ associations. That letter, endorsed by the CEO of Mercedes-Benz, Ola Kaellenius, argued that a 100 percent emission reduction target may no longer be practical for cars by 2035.

Discussion With EU Leadership on The Horizon

European Commission President Ursula von der Leyen is scheduled to meet with automotive industry leaders on September 12 to deliberate the future of the sector. Facing stiff challenges such as the rise of Chinese competition and the implications of US tariffs, the stakes for the EU’s policy decisions have never been higher.

Potential Risks of Eroding Ambitious Targets

Industry leaders like Michael Lohscheller, CEO of Polestar, caution that any weakening of the targets could undermine climate objectives and compromise Europe’s competitive edge in the global market. Michiel Langzaal, chief executive of EU charging provider Fastned, further highlighted that investments in charging infrastructure and software development are predicated on the certainty of these targets.

Regulatory Compliance And The Mercedes-Benz Exception

A report from transport research and campaign group T&E indicates that nearly all European carmakers, with the exception of Mercedes-Benz, are positioned to meet CO₂ regulation requirements for the 2025-2027 period. To avoid potential penalties, Mercedes must now explore cooperation with partners such as Volvo Cars and Polestar.

Conclusion

The industry’s unified stance underscores the critical balance between environmental aspirations and maintaining competitive advantage. With high-level discussions imminent, the EU’s forthcoming decisions will be pivotal in shaping not only the future of the continent’s automotive sector but also its global positioning in the race towards sustainable mobility.

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