SoftBank-backed digital payments company OPay has withdrawn its planned $304 million initial public offering in the United States, citing a regulatory inquiry from a foreign jurisdiction.
The Nigeria-focused fintech disclosed this in a statement on Friday, describing the jurisdiction as “immaterial” to its core operations. It did not identify the regulator or the nature of the inquiry.
OPay said it expects the matter to be resolved satisfactorily in the near future and 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 added that the inquiry would not affect its operations, regulatory standing or customer service in Nigeria and its other markets.
Earlier on Friday, OPay had announced it priced 16 million American depositary shares at $19 each — at the bottom of its targeted $19-to-$21 range — valuing the company at about $4 billion.
The company had planned to list on the New York Stock Exchange under the ticker symbol “OPay.”
OPay could not be reached for further comment outside office hours, while SoftBank Group, whose entities owned a 6.6% stake in the company before the offering, did not immediately respond to a request for comment.
The withdrawal comes as several companies globally have delayed stock market listings in recent weeks amid stubborn inflation and a selloff in AI-related stocks that have weighed on investor sentiment.
Founded in 2018 by Chinese billionaire Yahui Zhou, who also founded Beijing Kunlun Tech, OPay provides digital financial services across emerging markets, including Nigeria and Indonesia. Its app offers payments, money transfers, savings and loans in economies where limited access to traditional banking can make everyday transactions difficult.
The fintech raised $400 million in 2021 at a $2 billion valuation and had about 50 million monthly active users as of July 31, according to its IPO prospectus.
Citigroup, Deutsche Bank, Standard Bank and CICC were among the underwriters.
