Key Takeaways
- • OPay withdrew a planned $304 million US IPO on Friday, citing a regulatory inquiry by a foreign jurisdiction it did not identify.
- • The offering had priced 16 million American depositary shares at $19 each, the bottom of the $19-to-$21 target range, implying a valuation of about $4 billion.
- • OPay said the probe relates to a jurisdiction it described as "immaterial" to its core operations and expects it to be resolved satisfactorily.
- • SoftBank entities held a 6.6% stake in OPay before the offering; SoftBank did not immediately comment.
- • Several companies have delayed listings in recent weeks amid stubborn inflation and an AI-stock selloff.
Summary
SoftBank-backed digital-payments company OPay withdrew a planned $304 million US initial public offering on Friday, citing a regulatory inquiry by a foreign jurisdiction it did not identify, according to Reuters. Earlier in the day, OPay had priced 16 million American depositary shares at $19 each, the bottom of its targeted $19-to-$21 range, valuing the company at about $4 billion. The company had planned to list on the NYSE under the ticker "OPay," with Citigroup, Deutsche Bank, Standard Bank and CICC among the underwriters.
In a statement, OPay did not identify the regulator or the nature of the inquiry. It described the matter as relating to a jurisdiction "immaterial" to its core operations and said it expected the matter to be resolved satisfactorily in the near future. The company stated the probe "should not be misconstrued as a reflection on the Company's business performance, financial condition, operational integrity, or regulatory standing," and said it would not affect operations, regulatory standing or customer service in Nigeria or its other markets. OPay could not immediately be reached for comment outside office hours.
Japanese technology investor SoftBank Group, whose entities owned a 6.6% stake in OPay before the offering, did not immediately respond to a request for comment. The withdrawal comes as numerous companies worldwide have delayed stock market listings in recent weeks, with stubborn inflation and a selloff in AI-related stocks weighing on investor sentiment.
Founded in 2018, OPay provides digital financial services across emerging markets including Nigeria and Indonesia, offering payments, money transfers, savings and loans. Chinese billionaire Yahui Zhou founded OPay and also Beijing Kunlun Tech, the gaming company that previously owned the dating app Grindr. The fintech raised $400 million in 2021 at a $2 billion valuation and had about 50 million monthly active users as of July 31, according to its IPO prospectus.
In a statement, OPay did not identify the regulator or the nature of the inquiry. It described the matter as relating to a jurisdiction "immaterial" to its core operations and said it expected the matter to be resolved satisfactorily in the near future. The company stated the probe "should not be misconstrued as a reflection on the Company's business performance, financial condition, operational integrity, or regulatory standing," and said it would not affect operations, regulatory standing or customer service in Nigeria or its other markets. OPay could not immediately be reached for comment outside office hours.
Japanese technology investor SoftBank Group, whose entities owned a 6.6% stake in OPay before the offering, did not immediately respond to a request for comment. The withdrawal comes as numerous companies worldwide have delayed stock market listings in recent weeks, with stubborn inflation and a selloff in AI-related stocks weighing on investor sentiment.
Founded in 2018, OPay provides digital financial services across emerging markets including Nigeria and Indonesia, offering payments, money transfers, savings and loans. Chinese billionaire Yahui Zhou founded OPay and also Beijing Kunlun Tech, the gaming company that previously owned the dating app Grindr. The fintech raised $400 million in 2021 at a $2 billion valuation and had about 50 million monthly active users as of July 31, according to its IPO prospectus.
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