Digital payment giant Klarna to launch US IPO, leading the September "explosive" listing boom

Led by Klarna Group, several companies submitted applications for US stock IPOs in August, laying the groundwork for as many as six companies to begin US IPO roadshows as early as next week and raising market expectations for the US IPO market in the coming months.

This digital payment company updated its filing with the US Securities and Exchange Commission (SEC) on August 15, including its latest financial results, sending a clear signal of its intention to move forward with the listing. According to reports in July, Klarna is accelerating preparations and plans to restart its previously suspended IPO as early as September.

In addition to Klarna, the cryptocurrency exchange Gemini Space Station Inc., run by billionaire Winklevoss twins, and blockchain financial enterprise Figure Technologies Solutions have also updated their listing documents. According to SEC regulations, companies must wait 15 days after their initial public IPO filing before officially launching a roadshow, meaning that Gemini, Figure, and others may begin their listing process after the Labor Day holiday.

Additionally, Legence Corp., an HVAC engineering contractor backed by Blackstone Group, beverage chain brand Black Rock Coffee Bar Inc., and public transportation software company Via Transportation Inc. also submitted potential IPO applications in August.

According to data compiled by Bloomberg, if all six companies set their IPO prices in the second week of September, it would mark one of the busiest periods for large IPO transactions since the IPO boom at the end of 2021. The data also shows that the last time five US companies raised more than $100 million through IPOs in a single week was in January this year, when meat giant Smithfield Foods Inc. led the month's IPO market with a $572 million debut.

A tight IPO window

The number of US companies in the IPO pipeline remains high, and the tight listing window may force candidate companies to accelerate their IPO plans. According to Bloomberg News, JPMorgan is currently serving as many as 30 companies that have either filed for IPOs or are actively gauging investor interest. Due to factors such as year-end holidays that may disrupt the IPO schedule, September and October have become the golden periods for most companies to advance their IPOs.

Cybersecurity company Netskope Inc., e-commerce company Pattern Group Inc., and water infrastructure company WaterBridge Infrastructure, backed by Five Point Group, all submitted IPO applications last week and may start their roadshows as early as the week of September 8; ticketing platform StubHub Holdings also updated its IPO filing this month.