SoftBank-Backed OPay Targets $500M Through New York IPO and Private Sale

OPay Digital Services is moving forward with plans to secure roughly $500M through a combination of a New York IPO and a simultaneous private investment round, according to people with knowledge of the deal.

The package includes a $200M private placement from Standard Bank Group running parallel to the public offering, Bloomberg reported. The IPO itself will involve issuing fresh shares to bring in additional capital.

The Nigerian payments provider filed a Form F-1 registration statement with the US Securities and Exchange Commission last week, marking a formal step toward the proposed offering.

OPay has submitted an application to list its American depositary shares on the New York Stock Exchange. The transaction is slated to close before year-end, with Citigroup, Deutsche Bank, Standard Bank, and China International Capital acting as underwriters.

Founded in 2018 by Chinese entrepreneur Yahui Zhou, OPay holds a licence from the Central Bank of Nigeria and operates under insurance from the Nigeria Deposit Insurance Corporation.

The SoftBank Group-backed platform last raised capital in 2021, pulling in $400M at a $2B valuation. OPay's services span digital payments, money transfers, and lending for both consumers and merchants across Nigeria, Indonesia, Egypt, and Pakistan.

Revenue more than doubled in the first half of the year, climbing to $467.1M from $197.5M in the six months ended 30 June, Reuters reported.

The company's website claims it serves tens of millions of users, agents, and merchants in Nigeria alone, reflecting the scale of its operations in its home market.