OPay Pulls $304M NYSE Listing After Foreign Regulator Opens Probe

Digital payments provider OPay has abandoned its planned $304 million initial public offering in the United States after facing a regulatory inquiry from an unnamed foreign jurisdiction.

The company, which operates primarily in Nigeria, confirmed the investigation involves a market that represents a minor part of its overall business. OPay declined to identify the regulator conducting the probe or specify what the inquiry concerns.

OPay told investors it anticipates the matter will be resolved favorably in the coming weeks.

The fintech emphasized the inquiry does not reflect problems with its business performance, financial health, operational standards, or regulatory compliance.

The probe should not be misconstrued as a reflection on the Company's business performance, ⁠financial condition, operational integrity, or regulatory standing.

The company maintains the investigation will have no impact on its day-to-day operations, regulatory approvals, or customer services across Nigeria and its other active markets.

The withdrawal followed OPay's decision to price 16 million American depositary shares at $19 each, the lowest point in its proposed $19-to-$21 range. At that price, the company would have carried a valuation of approximately $4 billion.

The listing was set for the New York Stock Exchange under the ticker symbol OPay, with Citigroup, Deutsche Bank, Standard Bank, and CICC serving as underwriters. SoftBank Group entities owned a 6.6% stake before the planned offering.

Launched in 2018, OPay delivers digital financial services in emerging economies, with a focus on Nigeria and Indonesia. The platform provides payment processing, money transfers, savings accounts, and lending products to populations with limited access to conventional banking infrastructure.

Chinese billionaire Yahui Zhou founded the company. Zhou also established Beijing Kunlun Tech, a gaming firm that previously controlled dating application Grindr.

OPay secured $400 million in funding during 2021 at a $2 billion valuation. According to its IPO filing, the platform served roughly 50 million monthly active users as of 31 July.