Updated Version 3 - SoftBank-backed OPay aims for a US IPO valuation of up to $4.4 billion

The full text has been supplemented with details and charts have been added

Reuters, October 23 - This digital payments company said on Friday that OPay is seeking a valuation of up to $4.42 billion in its initial public offering (IPO) in the United States, aiming to capitalize on the growing demand for digital financial services in emerging markets.

The company, whose main market is Nigeria, plans to raise up to $366 million by offering about 16 million American Depositary Shares (ADS) priced between $19 and $21 each.

This offering comes as the U.S. IPO market faces renewed pressure from rising inflation and a selloff in artificial intelligence-related stocks, dampening investor enthusiasm for new listings and prompting several companies to postpone their listing plans.

Founded in 2018, OPay provides digital financial services including payments, remittance, savings, and loans, with its business also spanning Indonesia, Egypt, and Pakistan.

According to Tracxn data, Nigeria, the world’s sixth most populous country, has become one of Africa’s leading fintech markets, nurturing companies such as Moniepoint, Flutterwave, and Interswitch.

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OPay was founded by Chinese billionaire Zhou Yahui, who is also the founder of Chinese gaming company Beijing Kunlun Tech, which previously owned dating app Grindr.

In 2021, the company raised $400 million at a $2 billion valuation. According to its IPO prospectus, its monthly active users reached about 50 million as of July 31.

According to the filing, a SoftBank-affiliated entity owned 6.6% of OPay before the IPO.

Multiple parties, including Redwheel Group, Coronation Africa Frontiers Fund, and other existing investors, have indicated interest in purchasing up to $270 million worth of ADS, though this indication is not binding. Stanbic Africa Holdings has separately agreed to invest up to $200 million through a concurrent private placement.

OPay plans to use the proceeds from the IPO and the concurrent private placement to invest in technology, expand its distribution network and markets, develop new products, and pursue potential acquisitions and strategic investments.

Citi, Deutsche Bank, Standard Bank, and China International Capital Corporation (CICC) are underwriters for this offering.

OPay will list on the New York Stock Exchange, with the ticker symbol “OPAY”.

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