Nigerian payments company OPay has withdrawn its planned $304 million initial public offering in the United States, only hours after pricing the shares, citing a regulatory inquiry in a foreign country that it has not named.
The decision, reported by Reuters and Nigerian outlets including TheCable and The Guardian, ends for now what would have been the first major listing of a Nigeria-focused fintech on the New York Stock Exchange.
From bell-ringing to withdrawal
On Friday, October 30, OPay priced 16 million American depositary shares at $19 each, the bottom of its $19 to $21 target range. At that price the company was valued at about $4 billion, double the $2 billion valuation from its 2021 funding round.
Executives rang the NYSE opening bell that day, but the shares never traded. As Flashinfong reported at the time, the company paused the start of trading, saying it still needed a formal no-objection from a regulator outside Nigeria. It initially insisted the pause was not a cancellation.
The listing has now been withdrawn altogether.
What OPay says
OPay said the inquiry came from a jurisdiction that is not important to its core business, and that it expects the issue to be settled soon. The company stressed that the probe should not be seen as a reflection on its business performance, finances, operations or regulatory standing.
Most importantly for its users, OPay said services in Nigeria and its other markets will continue as normal.
The company has not said which country’s regulator is involved, what the inquiry concerns, or whether it plans to try listing again.
Who is OPay?
OPay was founded in 2018 by Chinese billionaire Zhou Yahui, who also founded Beijing Kunlun Tech. It has grown into one of Nigeria’s biggest digital payment platforms, offering transfers, bill payments, savings and loans, and it also operates in Egypt and other markets.
According to its IPO prospectus, it had about 50 million monthly active users as of July 31. SoftBank Group entities owned a 6.6% stake before the planned offering. Citigroup, Deutsche Bank, Standard Bank and China International Capital Corporation (CICC) were the banks managing the deal.
Why it matters
The withdrawal is a blow to hopes that OPay’s listing would open the door for other African tech firms seeking US investors. The muted pricing had already pointed to caution, with Reuters noting that many companies have recently delayed listings because of stubborn inflation and a sell-off in AI-related stocks.
Analysts will be watching for answers to a few key questions:
- Which foreign regulator opened the inquiry, and why?
- Will OPay return to the market once the issue is resolved?
- Will Nigerian regulators, including the Central Bank of Nigeria, comment on the matter?
For now, OPay’s millions of Nigerian customers can keep using the app as usual, according to the company.
Sources: Reuters, TheCable, The Guardian Nigeria, China Global South Project.
