REG - Chrysalis Investment - Klarna IPO and Shareholder Consultation Update

Chrysalis InvestmentsAnnouncement

10/09/2025 09:45

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RNS Number : 7791Y  Chrysalis Investments Limited  10 September 2025

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Abuse (Amendment) (EU Exit) Regulations 2019.

 

10 September 2025

 

 

Chrysalis Investments Limited ("Chrysalis" or the "Company")

 

Klarna IPO and Shareholder Consultation Update

 

 

The Company is pleased to announce an update in relation to its investment in
Klarna Group plc ("Klarna").

 

On 2 September 2025, Klarna announced the launch of its initial public
offering (the "Klarna IPO") of approximately 34.3 million ordinary shares on
the New York Stock Exchange. The Klarna IPO successfully completed on 9
September 2025, at a price of USD40 per ordinary share, above the indicated
range of USD35-37, valuing Klarna at approximately USD15 billion; trading is
expected to commence today. As at the date of this announcement, the Company
holds 4.2 million shares in Klarna.

 

Chrysalis first invested in Klarna in August 2019 at a valuation of USD5.5
billion. Its blended entry price across three rounds of investment is
approximately USD25.6 per share (at current rates), representing a money
multiple of approximately 1.6x (unrealised) at Klarna's IPO valuation. The
Company's assessed market valuation of Klarna as at 30 June 2025 was
approximately USD16.6 billion, valuing the Company's position at £136.9
million, which represented 15.1% of NAV.

 

The Company, as advised by the Investment Adviser, elected not to sell any
shares at IPO. The Investment Adviser believes Klarna is well-positioned to
benefit from attractive growth prospects over the medium-term. In line with
other major Klarna shareholders, the Company's shareholding in Klarna is
subject to a customary lock-up period of six months from IPO.

 

Klarna's recent trading

 

Klarna recently published its second quarter 2025 results which demonstrated
strong growth in a number of key metrics. Gross Merchandise Volume ("GMV")
increased by +19% (1Q +13%), while revenues increased by +20% (1Q +15%), both
metrics on a year-on-year, like-for-like basis. Over the period, GMV growth
accelerated from +15% in April to +24% by June, highlighting the growth
potential of Klarna's recently announced strategic integrations, such as
Stripe. The Investment Adviser expects Klarna to benefit from a number of
other partnerships going live and scaling over the course of the next twelve
months.

 

Klarna has proactively managed its cost base over the past two years and this
has led to average revenue per employee increasing from $0.4m in 2Q 2023 to
$1.0m in 2Q 2025; adjusted operating expenses have fallen by -24% since 1Q
2022 on a like-for-like basis. As Klarna continues to grow, the Investment
Adviser expects operating leverage - aided by on-going cost efficiency, partly
AI-driven, and the potential to expand gross margins - to translate into an
 attractive operating profit margin and profit stream.

 

Klarna's valuation

 

The recommendation not to sell any Klarna shares by the Investment Adviser was
made on the grounds of both Klarna's expected future growth potential, and on
near-term valuation, which it believes compares very favourably to listed
peers. The Investment Adviser intends to monitor performance of Klarna in the
aftermarket and will advise the Company on its holding accordingly.

 

Shareholder consultation update

 

In May 2026, the Board stated it would seek shareholder views on capital
allocation in advance of a vote on the current Capital Allocation Policy
("CAP") at the AGM in 2026; this consultation is currently underway. The
intention is to consult with as many shareholders as possible to determine
their views to enable the Board to propose any changes to a future CAP, if
deemed appropriate. The Company will provide an update in due course.

 

Nick Williamson and Richard Watts (Managing Partners of the Investment
Adviser) comment:

 

"The Company's first investment in Klarna was in 2019 at a valuation of $5.5
billion, with primary capital used to support its rollout strategy in both the
US and the UK. Since then, Klarna has grown materially in size - GMV has risen
from $35 billion in 2019 to over $102 billion in 2024 - and the company has
moved from a significant loss-making position a few years ago into
profitability.

 

It is clear that consumers are looking for more innovative credit solutions
than those offered by incumbents, and we expect this market dynamic to drive
significant future growth opportunities for the industry. Combined with a
number of significant relationship agreements that Klarna has signed with
major players in the ecommerce and payments industries, we believe the outlook
for sustained, robust top-line growth is significant.

 

We wish Sebastian, Niclas and the team all success as a listed company as
Klarna continues its mission to be available everywhere for everything."

 

-ENDS-

 

 For further information, please contact:

 Media                                             +44 (0) 7921 881 800

 Montfort Communications:                          chrysalis@montfort.london

 Charlotte McMullen / Imogen Saunders

 Investment Adviser                                +44 (0) 20 7871 5343

 Chrysalis Investment Partners LLP:

 James Simpson

 AIFM                                              +44 (0) 20 7397 5450

 G10 Capital Limited:

 Maria Baldwin

 Deutsche Numis:                                   +44 (0) 20 7260 1000

 Nathan Brown / Matt Goss

 Panmure Liberum:                                  +44 (0) 20 3100 2222

 Chris Clarke / Darren Vickers

 Barclays Bank PLC:                                +44 (0) 20 7623 2323

 Dion Di Miceli / Stuart Muress / James Atkinson

 IQEQ Fund Services (Guernsey) Limited:            +44 (0) 1481 231 852

 Aimee Gontier / Elaine Smeja

 

LEI: 213800F9SQ753JQHSW24

A copy of this announcement will be available on the Company's website at
https://www.chrysalisinvestments.co.uk
(https://www.chrysalisinvestments.co.uk)

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