Klarna, a buy now, pay later giant, files for a U.S. IPO.

• On Wednesday, Klarna, renowned for its "buy now, pay later" approach, disclosed that it has submitted IPO documents to the U.S. Securities and Exchange Commission.
• Analysts recently valued the company in the $15 billion range.
• In addition to SoftBank, Klarna's shareholders include notable venture capital firms such as Sequoia Capital and Atomico.

On Wednesday, Klarna, a well-known company for its "buy now, pay later" business model, filed initial public offering documents with the U.S. Securities and Exchange Commission.

The Swedish payments company has not yet determined the number of shares to be offered, the price range for the proposed offering, and the timing of the listing, which is subject to market conditions.

During the pandemic-led surge in fintech stocks, the company had a valuation of $46 billion in a funding round led by SoftBank's Vision Fund 2. However, recent analyst valuations placed the company in the $15 billion range.

In 2022, Klarna raised $6.7 billion on a valuation of $6.7 billion, resulting in an 85% haircut in its most recent primary fundraising round.

In addition to SoftBank, Klarna's shareholders include notable venture capital firms such as Sequoia Capital and Atomico.

Sebastian Siemiatkowski, CEO of Klarna, stated in an interview with CNBC that unfavorable rules on employee stock options in Europe could lead to the company losing talent to U.S. tech giants such as Google, Apple, and Meta.

Siemiatkowski, CEO of the financial technology firm, stated that compensation is the number one risk in his opinion when discussing the risks of the IPO with CNBC. He emphasized that compensation is a common element of IPO prospectus filings.

Siemiatkowski stated in a February interview with CNBC's "Closing Bell" that an IPO in 2024 was not impossible.

In the first half of the year, Klarna reported a profit, reversing its loss from the previous year and moving closer to its anticipated stock market debut.

The decision of Klarna to list on the New York stock market is a significant setback for European stock exchanges, which have been working to attract local tech giants to list domestically.

The London Stock Exchange has introduced reforms to enhance the U.K.'s appeal as a listing destination for tech companies, allowing founders to issue dual-class shares that preserve entrepreneurs' control over a company's strategy and direction.

Klarna's IPO market was among the options Siemiatkowski was considering, but he hadn't made a final decision yet.

In 2021, he stated that the company was more likely to list in the U.S. than the U.K., as America is a high-growth area for the firm where it aims to increase its brand visibility.