KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Key Takeaways:
Klarna priced its US IPO at US$40 per share, raising US$1.37 billion, above the expected range.
The deal values the Swedish BNPL firm at US$15.1 billion, well below its 2021 peak of US$45 billion but above its 2022 low of US$6.7 billion.
The offering was oversubscribed 25 times, underscoring revived investor appetite for fintech listings despite tariff-driven market volatility.
Market Reaction
Klarna’s IPO comes amid a broader rebound in equity markets and strong demand for new listings, following recent blockbuster debuts in both fintech and crypto sectors. The deal highlights investor willingness to back high-growth but unprofitable fintechs in a more selective macro backdrop. Klarna’s debut on the NYSE under ticker KLAR will be closely watched as a bellwether for BNPL adoption and fintech valuations more broadly.
Financial Performance & Challenges
Revenue: Rose to US$823 million in Q2 2025, up from US$682 million a year earlier.
Losses: Widened to US$52 million from US$7 million, as expansion costs weighed on margins.
Business mix: 75% of revenue comes from merchant transaction/service fees, while interest income has risen to 25%.
Profitability remains elusive as Klarna balances double-digit user and transaction growth with elevated credit risk and competition in the BNPL space. Analysts caution that growth without a clear path to profitability could weigh on post-IPO performance.
Investment Implications
Sector signal: Klarna’s successful raise suggests that fintech IPOs may be back on the table, though scrutiny on earnings quality will be high.
Brand advantage: Despite losses, Klarna retains strong brand recognition, which analysts view as a critical differentiator in a competitive BNPL market.
Consumer demand: With US spending resilient despite inflation and labour market headwinds, BNPL services like Klarna remain attractive alternatives for both consumers and merchants.
Bottom Line
Klarna’s US$1.37 billion IPO reopens the door for fintech listings after a two-year lull. While the valuation reflects a more sober market view compared with its 2021 peak, oversubscription signals optimism that Klarna’s brand strength and scale can eventually deliver profitability. The stock’s performance in its NYSE debut will set the tone for peers considering listings in the months ahead.
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