Fintech unicorns are watching Klarna's debut for signs of when IPO window will reopen

Published On Nov 19, 2024, 1:16 AM

Fintech companies are closely monitoring Klarna's upcoming IPO in the U.S., as they wait for favorable conditions to resume their own public offerings. Although Klarna has filed for an IPO, many fintech unicorns like GoCardless and Airwallex believe it's not yet the right time for them to go public. They are focusing on building their businesses instead. Analysts express more optimism about the IPO market conditions improving over the next few years, forecasting a potential increase in IPO activity in Europe and the U.S. as early as 2025.

Stock Forecasts

Investors in the fintech sector should keep an eye on developments surrounding Klarna's IPO as a potential indicator for the broader market. If Klarna's IPO is successful, it may signal positive sentiment for other fintechs considering going public, potentially boosting stock prices in this sector. However, if the IPO underperforms, it could suppress interest and valuations in forthcoming fintech IPOs.

Investors may consider the ARK Fintech Innovation ETF (ARKF) to gain exposure to a portfolio of fintech companies, including those that may benefit from a revitalized IPO market if Klarna's offering goes well.

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