SoftBank-backed OPay cancels $304M U.S. IPO over regulatory inquiry - Bloomberg

Nigerian fintech firm OPay has abandoned its planned $304 million initial public offering on the New York Stock Exchange, Bloomberg reported, citing a company statement. The payments platform had been set to commence trading on Friday at a valuation of around $4 billion, positioning itself as one of the most significant emerging-market fintech listings in the U.S. OPay cited a regulatory inquiry in a foreign jurisdiction as the reason for canceling the offering, though the company declined to disclose further details about the investigation or the authorities involved.

The inquiry appeared to have no bearing on OPay's core business operations, according to the company's CEO. OPay opted to abandon the offering after consultations with its underwriters, deeming it the most prudent course of action given the circumstances. The company expressed confidence that the regulatory matter would be resolved satisfactorily soon.

OPay priced its American depositary receipts at $19 each on Thursday, anticipating their debut in trading on Friday. However, shares were projected to open between $16.25 and $16.75, significantly lower than their offering price. The NYSE ultimately halted trading around 3:30 p.m. New York time, with no executed transactions observed on the exchange's message feed.

Lead underwriters Citigroup, Deutsche Bank, and Standard Bank of South Africa referred all inquiries to OPay, with Citigroup declining to comment and Deutsche Bank not immediately responding. OPay stressed that the decision should not be interpreted as reflecting issues with its financial performance, operational integrity, or regulatory standing.

The company reiterated its commitment to investing in Nigeria, where the adoption of digital financial services has fueled the growth of mobile payment providers.