👨🏿🚀TechCabal Daily – OPay’s IPO hits a wall
In today's edition: OPay withdraws US IPO || Egypt’s first locally assembled EVs || Airtel Africa acquires more 5G spectrum || South Africa's taxman comes for influencers
On Saturday, OPay put an end to its plans for a $304 million US IPO, one day after setting its shares at $19 each. The Nigerian payment platform disclosed that a regulatory investigation in an unspecified foreign jurisdiction was the reason behind the cancellation of the listing, leaving its previously announced $4 billion valuation suspended in mid-air.
OPay had initially planned to commence trading on the New York Stock Exchange on Friday, with its American Depositary Shares priced at $19. However, the company suspended the offering after consulting with its underwriters, including Citigroup, Deutsche Bank, and Standard Bank. OPay announced the decision in a statement, citing that the inquiry pertains to a jurisdiction unrelated to its primary operations. The specific regulatory body or the nature of the investigation has not been revealed.
The news of OPay's IPO withdrawal carries significant implications. OPay represents one of Nigeria's leading payment companies, boasting more than 50 million users. If the listing had proceeded, it would have provided US investors with an opportunity to invest in one of Africa's most prominent fintech businesses. The withdrawal of the IPO also underscores how regulatory concerns in a company's non-primary market can potentially hinder access to public capital, irrespective of the presence of powerful backers like SoftBank.
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