Buy-now, pay-later lender Klarna raised $1.37 billion in its U.S. initial public offering, two sources familiar with the matter told Reuters on Tuesday, setting the stage for a market debut that could set the trend for high-growth fintech listings.

The Sequoia Capital-backed Swedish company and some of its existing investors sold 34.3 million shares at $40 each above the targeted range of $35 to $37.

The IPO values Klarna at $15.11 billion, a significant step down from the more than $45 billion valuation it notched in 2021 after a rapid ascent as a BNPL leader.

Its valuation dropped to $6.7 billion in 2022 amid rising interest rates and inflation.

Klarna is headlining companies ranging from crypto to consumer that are aiming to go public in New York this week, as a rallying stock m

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