OPay Withdraws $304m US IPO, Cites Foreign Regulatory Inquiry

OPay has withdrawn its planned $304 million initial public offering (IPO) in the United States after a regulatory inquiry by a foreign jurisdiction disrupted its planned market debut.

In a statement cited by Reuters on Friday, OPay said the foreign jurisdiction involved in the inquiry was “immaterial” to its core operations.

“The inquiry should not be misconstrued as a reflection on the Company’s business performance, financial condition, operational integrity, or regulatory standing,” the company said.

While the company did not state the nature of the inquiry and the foreign jurisdiction, the fintech clarified that the matter would not affect its operations, regulatory standing or customer service in Nigeria and its other markets.

The Softbank-backed fintech company had priced 16 million American depositary shares (ADSs) at $19 each, valuing the proposed offering at about $304 million. The price was at the lower end of its target range of $19 to $21.

Although the offering had implied a valuation of approximately $4 billion, OPay withdrew it before the ADSs began trading on the New York Stock Exchange (NYSE).

The development followed the company’s listing ceremony at the NYSE on Friday, where co-chief executive officer Lars Boilesen celebrated the planned debut as a milestone for OPay and Nigeria.

“We are proud to be the first Nigerian fintech to list in the US on the New York Stock Exchange,” Boilesen said at the event.

He also outlined plans to take OPay’s financial services to other African countries where access to banking remains limited.

According to the company’s IPO prospectus, OPay had about 50 million monthly active users as of July 31.