Key Takeaways
- • OPay raised $304 million in its US initial public offering by selling 16 million American depositary shares at $19 apiece, at the bottom of its targeted $19-$21 range, implying a valuation of about $4 billion.
- • SoftBank entities owned a 6.6% stake in OPay before the offering, according to the filing cited by Reuters.
- • OPay, a Nigeria-focused digital financial services platform founded in 2018, had about 50 million monthly active users as of July 31, per its IPO prospectus.
- • The listing comes amid stubborn inflation and an AI-stock selloff that have prompted several companies to delay IPOs, making pricing and demand harder to secure.
- • Citigroup, Deutsche Bank, Standard Bank and CICC are underwriters; OPay will list on the NYSE under the symbol "OPAY."
Summary
SoftBank-backed fintech OPay said on Friday it raised $304 million in its US initial public offering, using public markets to position itself to benefit from the expansion of digital finance across emerging economies, according to Reuters. The Nigeria-focused firm sold 16 million American depositary shares at $19 apiece, at the low end of its targeted range of $19 to $21, giving it a valuation of about $4 billion.
The offering was priced against a backdrop of stubborn inflation and a selloff in AI-related stocks, which have weighed on investor sentiment and prompted several companies to delay listing plans. Market volatility and valuation concerns have made it harder for issuers to attract demand and secure favorable pricing.
Founded in 2018, OPay provides payments, money transfers, savings and loans through a single app, targeting gaps in banking infrastructure across emerging markets including Nigeria and Indonesia. The company was founded by Chinese billionaire Yahui Zhou, who also founded Beijing Kunlun Tech, the gaming company that previously owned dating app Grindr. OPay 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.
SoftBank entities owned a 6.6% stake in OPay before the offering, according to the filing. Citigroup, Deutsche Bank, Standard Bank and CICC are among the underwriters, and OPay will list on the NYSE under the "OPAY" symbol.
The offering was priced against a backdrop of stubborn inflation and a selloff in AI-related stocks, which have weighed on investor sentiment and prompted several companies to delay listing plans. Market volatility and valuation concerns have made it harder for issuers to attract demand and secure favorable pricing.
Founded in 2018, OPay provides payments, money transfers, savings and loans through a single app, targeting gaps in banking infrastructure across emerging markets including Nigeria and Indonesia. The company was founded by Chinese billionaire Yahui Zhou, who also founded Beijing Kunlun Tech, the gaming company that previously owned dating app Grindr. OPay 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.
SoftBank entities owned a 6.6% stake in OPay before the offering, according to the filing. Citigroup, Deutsche Bank, Standard Bank and CICC are among the underwriters, and OPay will list on the NYSE under the "OPAY" symbol.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.