SoftBank-backed PayPay has raised $879.8m in its US initial public offering (IPO), marking the largest US stock market listing by a Japanese company in a decade.
According to a Bloomberg report, the digital payments firm’s shares rose 14% in their first day of trading on Thursday (12 March) following the company’s debut on the Nasdaq.
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PayPay priced its American depositary receipts (ADRs) at $16 per share, below the marketed range of $17 to $20.
A total of 55 million ADRs were sold in the offering, including 31.1 million sold by PayPay and 23.9 million sold by an affiliate of SoftBank Vision Fund II. The ADRs each represent one common share.
Based on outstanding shares listed in its filings, the closing price valued PayPay at around $12.1bn. The company had reportedly sought a valuation of around $13.4bn.
The company had postponed the start of formal marketing amid uncertainty linked to conflict in the Middle East.
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By GlobalDataFilings also show that Abu Dhabi Investment Authority, a unit of Qatar Investment Authority, and an arm of Visa agreed to purchase up to $220m of shares in total.
Financial results included in the filing show PayPay recorded profit of Y103.3bn ($656m) on revenue of Y278.5bn in the nine months ended December.
PayPay had outlined overseas expansion efforts ahead of the global offering. The company said it made its service available in more than 2 million shops in South Korea for Japanese customers last year. In February, PayPay announced a partnership with Visa to explore opportunities in the US.
