Digital payments company OPay has withdrawn its planned $304m IPO in the US after receiving a regulatory inquiry from an unidentified foreign jurisdiction.
The Nigeria-focused company said the inquiry related to a market that was “immaterial” to its core operations.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
It did not name the regulator or disclose the nature of the investigation.
OPay said it expected the matter to be resolved satisfactorily in the near future.
It added that the probe “should not be misconstrued as a reflection on the Company’s business performance, financial condition, operational integrity, or regulatory standing.”
The company said the inquiry would not affect its operations, regulatory status, or customer services in Nigeria and its other markets.
OPay could not immediately be reached for comment outside office hours.
The withdrawal came after OPay priced 16 million American depositary shares at $19 each, the bottom of its proposed $19-to-$21 range. The pricing would have valued the company at about $4bn.
The company had planned to list on the New York Stock Exchange under the ticker symbol “OPay”. Citigroup, Deutsche Bank, Standard Bank, and CICC were among the underwriters.
SoftBank Group entities held a 6.6% stake in OPay before the proposed offering.
Founded in 2018, OPay provides digital financial services in emerging markets, including Nigeria and Indonesia. Its app offers payments, money transfers, savings, and loans in markets where access to traditional banking remains limited.
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 company raised $400m in 2021 at a valuation of $2bn. Its IPO prospectus said it had about 50 million monthly active users as of 31 July.
