SoftBank-backed fintech OPay said on Friday it has raised $304 million in its US initial public offering, tapping public markets to position itself to benefit from expanding digital finance sector across emerging economies.
The Nigeria-focused firm sold 16 million American depositary shares at $19 apiece in the IPO, compared with its targeted range of $19 to $21, giving it a valuation of about $4 billion.
This comes at a time when stubborn inflation and a selloff in AI-related stocks have weighed on investor sentiment, prompting several companies to delay their listing plans as market volatility and concerns over valuations make it harder for issuers to attract demand and secure favorable pricing.
Founded in 2018, OPay provides digital financial services across emerging markets, including Nigeria, Indonesia and other emerging economies.
Its platform taps into gaps in banking infrastructure across emerging economies, where limited access to traditional financial services can make everyday transactions difficult, by offering payments, money transfers, savings and loans through a single app.
OPay was founded by Chinese billionaire Yahui Zhou, who also founded Beijing Kunlun Tech, a Chinese gaming company that previously owned dating app Grindr.
The fintech had raised $400 million in 2021 at a valuation of $2 billion. It 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 offering’s underwriters. OPay will list on the NYSE under the “OPAY” symbol.
Reuters
