OPay IPO 'disaster' as Chinese regulatory inquiry catches dealmakers off guard
The initial public offering of the Nigeria-focused payments company was abruptly pulled to the surprise of those involved.
OPay's $304 million US IPO abruptly fell apart hours after pricing on October 30 following a Chinese regulatory inquiry, leaving dealmakers shocked and the fintech's future uncertain. The Nigerian-focused company, which generates 90% of its revenue in Nigeria, had no operations in mainland China but founder Zhou Yahui, a Chinese billionaire, held a significant stake in OPay.
Despite advising investors about potential Chinese regulatory risks in its prospectus, the company was blindsided by the intervention. Chinese legal counsel had previously suggested OPay did not need approval from the China Securities Regulatory Commission, but the inquiry still caught everyone off guard. Earlier deal documentation listed CICC's Hong Kong securities business among underwriters, but it was absent from the announcement, potentially raising red flags.
Closely connected to the deal, OPay's advisers and banks have remained tight-lipped about the fallout. The inquiry was unexpected because OPay's core business is unrelated to China, and the company expected the matter to be resolved swiftly. African investors and technology founders will hope OPay's setback is an isolated incident, rather than a deterrent to attracting international public-market capital.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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