OPay Digital Services is reportedly preparing to raise approximately $500m through an initial public offering (IPO) in New York and a concurrent private placement.
The total includes $200m from a parallel private placement with Standard Bank Group, Bloomberg reported, citing people familiar with the transaction. The planned public listing will also include the sale of new shares to raise capital.
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The report follows OPay’s filing of a registration statement on Form F-1 with the US Securities and Exchange Commission (SEC) last week in connection with the proposed offering.
The company has also applied to list its American depositary shares (ADSs) on the New York Stock Exchange.
Citigroup, Deutsche Bank, Standard Bank, and China International Capital are serving as underwriters on the transaction. The offering is expected to take place before the end of the year.
Electronic Payments International has reached out to OPay for comment.
According to its website, OPay was established in 2018 and holds a licence from the Central Bank of Nigeria (CBN). It is insured by the Nigeria Deposit Insurance Corporation (NDIC).
The company, founded by Chinese businessman Yahui Zhou, raised $400m in 2021 at a valuation of $2bn.
SoftBank Group-backed OPay provides digital payments and lending services. Its platform enables consumers and merchants to make payments, transfer money, and access credit.
OPay operates in Nigeria, Indonesia, Egypt, and Pakistan. Its website states that it serves tens of millions of users, agents, and merchants in Nigeria.
Reuters reported that OPay’s revenue more than doubled to $467.1m from $197.5m in the six months ended 30 June.
