MARKET NEWS

Summary

• SoftBank-backed fintech OPay raises $304 million in its US initial public offering.

• The Nigeria-focused company sells 16 million American depositary shares at $19 each.

• IPO values OPay at approximately $4 billion, below its previous $2 billion valuation in 2021.

• The company has around 50 million monthly active users.

• OPay will list on the New York Stock Exchange under the ticker symbol OPAY.

NEW YORK, Oct 30 (Reuters) — SoftBank-backed fintech company OPay said on Friday it had raised $304 million in its US initial public offering, tapping public markets to position itself to benefit from the expanding digital finance sector across emerging economies.

The Nigeria-focused company sold 16 million American depositary shares at $19 apiece, compared with its targeted price range of $19 to $21, giving it a valuation of approximately $4 billion.

The listing comes amid persistent inflation and a selloff in artificial intelligence-related stocks, which have weighed on investor sentiment. Market volatility and concerns over valuations have prompted several companies to delay their listing plans, making it more difficult for issuers to attract demand and secure favourable pricing.

Founded in 2018, OPay provides digital financial services across emerging markets, including Nigeria and Indonesia.

Its platform addresses gaps in banking infrastructure in emerging economies, where limited access to traditional financial services can make everyday transactions difficult. The company offers payments, money transfers, savings and loans through a single application.

OPay was founded by Chinese billionaire Yahui Zhou, who also established Beijing Kunlun Tech, a Chinese gaming company that previously owned dating app Grindr.

The fintech company raised $400 million in 2021 at a valuation of $2 billion. It had approximately 50 million monthly active users as of July 31, according to its IPO prospectus.

SoftBank entities held a 6.6% stake in OPay before the offering, according to the filing.

Citigroup, Deutsche Bank, Standard Bank and CICC were among the underwriters for the IPO.

OPay will list on the New York Stock Exchange under the ticker symbol OPAY.