IPOs are back. 7 companies are expected to list in New York this week.
Many IPO processes were postponed by economic uncertainty and market volatility earlier in the year, resulting in an exceptionally active September pipeline. So far, the market has shown a strong appetite to absorb these new listings.
We were particularly interested in Klarna’s IPO. This listing has been talked about for years, reflecting the significant market interest in a large and innovative company operating in a very fast-growing segment. The deal was priced at $40, above the top of the marketed range.
Like any growth company, Klarna has had its ups and downs. This was evident in its volatile private valuation in recent years.
But unlike most growth companies, Klarna has had a clear & long-term investor relations strategy. Well before its IPO process, potential investors knew what Klarna stood for and how it was performing, with a consistent set of well-defined KPIs.
With ambitious growth companies staying private for longer, an investor relations strategy is essential but remains underappreciated. Engaging potential investors early with a clear equity story is a best practice which we expect more companies to follow as they plan their own journeys towards the public markets.
Contact us if you want to discuss how equity stories can boost the valuation of your portfolio companies and get them exit ready in a competitive M&A environment: https://www.accellency.eu/contact-us/
You can read more about Accellency’s Equity Story for Exit Readiness (ESTEX®) methodology here: https://www.accellency.eu/publication/equity-stories-a-critical-tool-for-exit-readiness/
