By Radarr Africa
OPay, the SoftBank-backed fintech company with major operations in Nigeria, has withdrawn its planned $304 million initial public offering (IPO) in the United States following a regulatory inquiry by a foreign jurisdiction.
The development interrupted the company’s planned entry into the New York Stock Exchange (NYSE), where its shares were expected to begin trading after the offering.
OPay had priced 16 million American depositary shares at $19 each, the lower end of its proposed price range of $19 to $21. The offering was expected to raise approximately $304 million and valued the company at about $4 billion.
The company disclosed that it had reached an agreement with its underwriters to terminate the underwriting arrangement and postpone the offering after the inquiry emerged.
In a statement, OPay said the inquiry involved a jurisdiction that was immaterial to its core business operations. It did not identify the country or disclose the specific issues being investigated.
The fintech company expressed confidence that the matter would be resolved in the near future and said the development should not be interpreted as a reflection of its business performance, financial condition or operational integrity.
OPay also assured customers and business partners that its services would continue normally in Nigeria and other markets where it operates.
However, a Bloomberg report cited by TheCable identified the jurisdiction as China. According to the report, sources familiar with the matter said OPay had no operations or revenue in China, with its connection to the country linked to its founder, Chinese businessman Zhou Yahui.
The reported Chinese connection has drawn attention because OPay’s business is focused on markets outside China, including Nigeria.
The planned IPO had represented a major step in the company’s efforts to access international capital markets. OPay’s proposed $4 billion valuation also highlighted investor interest in financial technology businesses serving emerging markets.
Founded in 2018, OPay provides digital financial services including payments, money transfers, savings and loans. Its operations in Nigeria have made it a significant player in the country’s digital payments market.
The withdrawal of the offering leaves uncertainty over when the company may return to the US market. OPay has not announced a new listing date, while the regulatory inquiry remains unresolved publicly.
For Nigeria’s fintech sector, the development highlights how regulatory issues outside a company’s main operating markets can affect its fundraising plans and international expansion.
