Opay Withdraws $304 Million NYSE IPO After Regulatory Inquiry

SoftBank-backed digital-payments company OPay withdrew a planned $304 million US initial public offering on Friday, citing a ​regulatory inquiry by a foreign jurisdiction it did not identify.

The Nigeria-focused company ‌described the inquiry as relating to a jurisdiction "immaterial" to its core operations. In a statement, it did not identify the regulator or nature of the inquiry.

OPay said it expected the matter ​to be resolved satisfactorily in the near future and that the probe "should ​not be misconstrued as a reflection on the Company’s business performance, ⁠financial condition, operational integrity, or regulatory standing."

The company said the inquiry would not ​affect its operations, regulatory standing or customer service in Nigeria or its other markets.

OPay ​could not immediately be reached for comment outside office hours.

Earlier in the day, OPay said it had priced 16 million American depositary shares at $19 each, the bottom of its targeted $19-to-$21 range, valuing ​the company at about $4 billion.

Japanese tech investor SoftBank Group, whose entities owned a ​6.6% stake in OPay before the offering, did not immediately respond to a request for comment.

Numerous ‌companies ⁠worldwide have delayed stock market listings in recent weeks as stubborn inflation and a selloff in AI-related stocks have weighed on investor sentiment.

OPay, founded in 2018, provides digital financial services across emerging markets, including Nigeria and Indonesia.

Its app offers payments, money ​transfers, savings and loans ​in economies where ⁠limited access to traditional banking can make everyday transactions difficult.

OPay was founded by Chinese billionaire Yahui Zhou, who also founded ​Beijing Kunlun Tech, a Chinese gaming company that previously owned ​dating app ⁠Grindr.

The fintech raised $400 million in 2021 at a valuation of $2 billion. It had about 50 million monthly active users as of July 31, according to its IPO prospectus.

Citigroup, Deutsche ⁠Bank, ​Standard Bank and CICC were among the underwriters. The ​company had planned to list on the NYSE under the ticker symbol "OPay."