Fintech firm Klarna Group has filed its prospectus for a U.S. initial public offering, moving ahead with plans to list even as recession fears rattle the stock market.

"The latest spike in volatility has dimmed the IPO prospects for a number of companies, but that has not completely shut down the market for new listings," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.

Klarna Group Plc filed publicly for a US initial public offering in what could be one of the year’s biggest financial company listings.