Oct 23 (Reuters) – OPay is targeting a valuation of up to $4.42 billion in its US initial public offering, the digital payments company said on Friday, as it seeks to capitalize on growing demand for digital financial services in emerging markets.
The Nigeria-focused firm is seeking up to $366 million by offering roughly 16 million American Depositary Shares between $19 and $21 apiece.
The offering comes as the US IPO market faces renewed pressure from higher inflation and a selloff in AI-related stocks, weighing on investor appetite for new listings and prompting several companies to delay their IPO plans.
Founded in 2018, OPay provides digital financial services, including payments, money transfers, savings and loans. The company also operates in Indonesia, Egypt and Pakistan.
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 company raised $400 million in 2021 at a valuation of $2 billion. It had about 50 million monthly active users as of July 31, according to its IPO prospectus.
SoftBank entities own a 6.6% stake in OPay before the offering, according to the filing.
OPay plans to use the proceeds from its IPO and concurrent private placement to invest in technology, expand its distribution network and markets, develop new products and pursue potential acquisitions and strategic investments.
Citigroup, Deutsche Bank, Standard Bank and CICC are among the underwriters for the offering.
OPay will list on the NYSE under the “OPAY” symbol.
(Reporting by Prakhar Srivastava and Pragyan Kalita in Bengaluru; Editing by Pooja Desai)
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