StubHub and Klarna have halted their plans to go public, as a new wave of market volatility caused by President Donald Trump’s sweeping tariff announcement has rippled through the global financial markets.
According to CNBC, citing a source with knowledge of the matter, companies are delaying their initial public offerings because of the uncertainty. They have not set up a new timetable for their listings.
Both firms had recently filed their IPO documents at the US Securities and Exchange Commission and were preparing to list on the New York Stock Exchange.
Klarna, a Swedish buy-now, pay-later company had planned to trade under the ticker KLAR. Meanwhile, online ticketing platform StubHub planned to list under STUB.
Klarna pauses long-awaited $15bn listing
Klarna was preparing to launch a roadshow for its IPO with investors as soon as next week.
The company decided to stop the proceedings due to the general market sell-off caused by fears of a new trade war.
The move comes during a pivotal time for Klarna. It has become a symbol of the highs as well as the lows in the fintech industry.
The company’s valuation was $46 billion at the height of investor excitement in 2021. However, it plummeted to just $6.7 billion a year later.
Klarna recently reported a return of profitability despite the dramatic drop.
In 2024 it posted a profit of $11 million, compared to a $244 million loss the year before.
Revenue increased by nearly 24%, to $2.81 billion. Klarna has aggressively pushed into the US market by securing partnerships such as Walmart, Apple and DoorDash.
A person familiarized with Klarna’s strategy stated that the company was not under any obligation to list in a certain timeframe. This leaves open the possibility of delaying the float if market conditions improve.
CoreWeave’s struggles have raised questions about the success of the IPO
StubHub, too, has decided to halt its IPO plans.
The decision was made after the company’s decision to follow the rocky debut by artificial intelligence infrastructure company CoreWeave. CoreWeave became the first venture-backed technology company to raise more than $1 billion in an IPO in the US since 2021.
CoreWeave, despite initial optimism, slashed the price of its IPO and suffered sharp losses during early trading. This reinforced concerns about the market appetite for technology listings.
Investor sentiment was further impacted after China announced retaliatory duties in response to Trump’s sweeping measures.
The S&P 500 fell 4.7% on Friday while Europe’s Stoxx600 dropped over 5%. The sell-off reflects growing investor anxiety about the prospect of an all-out trade war.
Affirm’s shares, Klarna’s US-listed competitor has already fallen over 45% in this year. This highlights the difficult environment for fintech companies.
The delay of Klarna’s and StubHub’s IPOs is a disappointment for venture capitalists who had hoped a rebound in listings during the Trump administration would revive the struggling exit market in the tech sector.
This post Klarna, StubHub and other companies delay IPO plans due to Trump tariff shock: report may be updated as new developments unfold.
This site is for entertainment only. Click here to read more
