SoftBank-backed Nigerian fintech OPay has withdrawn its planned $304 million initial public offering on the New York Stock Exchange, citing a regulatory inquiry in an unnamed foreign jurisdiction.
The company and its underwriters mutually agreed to terminate the underwriting agreement dated October 29, meaning its American depositary shares will not begin trading as previously scheduled.
OPay had priced 16 million ADSs at $19 each — the bottom of its $19–$21 target range — valuing the firm at about $4 billion. The shares were due to trade under the ticker OPAY.
In a statement, the company described the jurisdiction involved as “immaterial” to its core business operations and said it expected the matter to be resolved satisfactorily in the near future.
“The inquiry should not be misconstrued as a reflection on the Company’s business performance, financial condition, operational integrity, or regulatory standing,” OPay said.
It stressed that the development would not affect its operations, regulatory standing or customer service in Nigeria or its other markets, including Indonesia, Egypt and Pakistan.
OPay, founded by Chinese entrepreneur Yahui Zhou, is one of Africa’s leading digital payments platforms. It reported about 50 million monthly active users as of July 31 and had raised $400 million in 2021 at a $2 billion valuation.
The sudden withdrawal came hours after a listing ceremony at the NYSE, where co-chief executive Lars Boilesen had described the planned debut as a milestone for the company and Nigeria.
