Shuns local market to go for USA listing in 2025, $20bn estimate valuation.
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Youād think that should give CHRY a boost.
AFRM, one of Klanaās competitors, has been among my best performers over the past year or so. For once, I luckily managed to time the low almost perfectly.
Hopefully, weāll start seeing more high-profile IPOs like Databricks and Northvolt.
Well itās up 4% today but still on a chunky discount so I might splurge on more
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Letās hope Northvolt chooses Europe ā we could certainly use more tech/growth-type companies listing here. It starting to feel like a vicious circle.
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Wait until Texas exchange launches, itāll likely kill everything else. Combining the capital available in the US with none of the corporate rules in NY.
I canāt remember which podcast (might be Patrick Boyle) where he was explaining NY becoming exchange and banking capital of the world was 95% coincidental. How archaic and in some cases āwokeā (no pitchforks pls) NY regulations are towards incorporating and or listing in NYC
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I didnāt know that was on the cards. I can well imagine it being the cowboy/wild west exchange!
not only that. itās not a hobby project from some random entrepreneur/VC itās very well funded by companies like Blackrock and Citadel. It will have volume and liquidity on day 1.
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I hadnāt heard anything about it!
Iāve done some searching and it seems like it will be centred in Dallas (Texas) and is aiming to launch in 2025.
Apparently it has secured 135 million USD of available funding (Reuters source)
According to the Financial Times it might have stricter rules than what you are hoping for @kali , extract: āJim Lee, chief executive of the TXSE, told the Financial Times the new exchangeās standards, including earnings tests, minimum prices and other unspecified measures, would be stringent enough to in effect exclude more than a third of the companies listed on Nasdaq and the New York Stock Exchange.ā
Sources:
Reuters article
Financial Times article
Future Texas Echangeās website
Interesting to hear new exchanges opening. What I would really like to see is the likes of PrimaryBid merging with Seedrs and Crowdcube, but the merger of Seedrs and Crowdcube wasnāt allowed.
What is missing is a good private equity exchange that helps facilitate IPO when ready.
Back on topic, Iāll be watching this IPO, yes I have exposure already through CHRY, not sure what I will do once it lists. If CHRY sells out its position I will probably buy on any sign of weakness.
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Iāll keep a close eye on it too. A comparison with Affirm could convince me to switch.
That said, I try to take my time with IPOs. If Iād invested In AFRM at the off, Iād be nursing a 50%+ loss today. Took me a few years to pull the trigger but Iām better off for some patience.
Reading up about Klarna, I hadnāt previously realised Michael Moritz is chairman ā not a bad person to have on the board to put it mildly.
Iām sure youāll know more about Klarna than me: how much of a āpureā buy-now-pay-later play is it compared with the likes of Square and Paypal?
Iām increasingly preferring businesses that ādo one thing and do it wellā as theyāre easier to understand than a company diced up into a dozen different divisions doing disparate things.
I wanted to buy ARM back when it relisted but thought it was expensive, so only up 25% instead of 120%
I guess your way is a bit like flipping between Mastercard / Visa.
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Therein lies the danger. Ordinarily, Iād rather just be invested as I have learned my lesson about sitting on the sidelines. But I get jittery with IPOs and Iād need a lot of conviction to buy early.
Yeah, from what I gather, the two have similar models. It would be nice to add another EU company even if itās US-listed as itās relatively slim pickings but a lot more research is required.
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I personally dislike buying expensive things, this (unless you got a bid before bell) will definitely be expensive.
it goes like
expensive ā hype ā fomo ā moon ā profit taking/rationalising
and then the price will settle.
Almost all IPOās experience that over hyped period and than the crash, Its difficult to say why this would not follow the same pattern. Recent very good (and in my opinion similar) examples are SNOW and Palantir.
Palantir recovered well after the crash, SNOW probably still have millions of retail bag holders since a few months after the IPO. Its too early to say where ARM crash territory will be at. May be itās different and there wonāt be one.
But itās always easy to look at the chart in retrospect and say gee wish I bought there and sold there.
to quote the philospher Gino, āif my grandmother had wheelsā¦ā 
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Thatās mostly my experience too, having watched a fair few IPOs closely. Without being able to get in before the bell, it feels like the gameās rigged against average-Jo investor so youāre better off not playing.
The only IPO Iāve bitten on pretty early was TEM over the summer which has worked out well so far but Iām sure itāll test new lows at some point and I invested in that one less for profit and more for purpose.
Going back to Klarna, this part of the finimise newsletter was interesting:
Why should I care?
For markets: AIās in the bag.
Klarna has been using AI to shave expenses and ramp up efficiency across the board. And thatās literally paid off: the company says its annual revenue per employee has jumped to $700,000 from $400,000 in just a year. And now itās planning to shrink the current workforce by nearly half and hire some of the best and brightest AI talent to transform whatās left.
The bigger picture: USA! USA!
Klarnaās just the latest of Europeās leading innovators to cross the pond and plant its stockās roots in New York City. And, sure, that probably says as much about the state of Europeās financial markets as it does about Americaās. Still, itās hard to imagine the trend reversing anytime soon, especially with even more investor-friendly policies likely on the horizon in the US.
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Klarna Group Plc today confidentially submitted a draft Registration Statement on Form F-1 to the Securities and Exchange Commission (the āSECā) relating to the proposed initial public offering of its ordinary shares
This is not a legally binding document but the wording here I think implies they will be listing āordinary sharesā and not use ADS(R) so might be ābuyableā inside ISAs. (Still not saying Iāll buy )
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Well, so much for that.
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this was somewhat expected tho right? They were kind of fishing for an āangel investorā
I wouldnāt know, I know nothing of them except remembering I saw some talks of hopes for a future IPO on this post when I saw the news.
Yeah they went totally downhill since the May? Chatter about IPO. EV car sales havenāt accelerated as much as people hoped, growing too fast to handle capacity thatās not needed yet and missing deadlines for orders. Reminds me a bit like Peloton albeit they were listed, I was talking about shorting them days before their fall.
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