German Startup 1Komma5 and Klarna Delay US IPO Plans

By Alessandro Parodi, Gianluca Lo Nostro and Charlie Conchie

(Reuters) - German unicorn 1Komma5 Grad has joined Sweden's Klarna in reassessing plans for a U.S. float as President Trump's renewable energy and trade policies have roiled markets.

The energy startup, which uses AI to provide solar power, energy storage and e-mobility solutions, says after recent fundraising it is valued at just over $1 billion to join a select club of unicorn status companies in Germany. It was aiming for an initial public offering on NASDAQ in 2025.

"Due to recent tariffs and market reaction we have postponed IPO plans to review the timeline," the company's founder and CEO Philipp Schroeder told Reuters.

As a potential global tariff war has disrupted markets in recent days, tech firm Swedish fintech Klarna has also put its U.S. listing on hold, while other companies are freezing dealmaking.

Klarna's listing could have valued it at over $15 billion, Reuters reported, and was seen as a potential catalyst for others to follow.

On Wednesday, the head of pan-European stock exchange operator Euronext said that volatility and uncertainty brought about by Trump's policies make the U.S. look like an emerging market more than a developed country.

Emerging markets often use tariffs to protect their industries while they try to develop.

LOSING APPEAL

European tech startups have looked to the U.S. to attract more liquidity, expand faster and face less regulatory hurdles than in their home markets.

"When we started and actually reached unicorn status already in '23, the overall environment for clean tech and technology companies out of Europe to actually still be listed at NASDAQ was an option that was suitable", 1Komma5 Grad's Schroeder said.

But recent shocks have made that market less appealing, he said.

Given uncertainty in U.S. markets in recent weeks, other European tech companies may consider other listing venues.

The "U.S. is no longer the only place to look for a tech IPO," said Gianni Cuozzo, chief executive of Italian tech startup Exein, which had previously said it was considering a U.S. listing in the 2027-2030 period. Cuozzo said the company had not yet decided what it would do.

Exein, which provides embedded cybersecurity, said it is valued at around 500 million euros ($545 million).

MYTHBUSTING US MARKETS

While the postponement of IPOs can be blamed on stock market volatility, some experts say that the appeal of a U.S. listing and the liquidity of those markets might have been exaggerated.

Last month, the London Stock Exchange issued a "mythbusting" note to warn British companies and advisers that inclusion in the S&P 500 index, which includes companies listed on the NASDAQ and the New York Stock Exchange, can be "extremely challenging" for non-U.S. companies.

Out of 20 British companies which listed in the U.S. since 2014 and raised at least $100 million, nine of them have delisted and seven are trading down 85% on average, while only four are trading up, the note said.

($1 = 0.9168 euros)

(Reporting by Alessandro Parodi and Gianluca Lo Nostro in Gdansk, and Charlie Conchie in London, editing by Anousha Sakoui and Elaine Hardcastle)