OPay has withdrawn its planned $304 million initial public offering (IPO) in the United States after a regulatory inquiry by a foreign jurisdiction disrupted its planned market debut.
In a statement cited by Reuters on Friday, OPay said the
foreign jurisdiction involved in the inquiry was “immaterial” to its core
operations.
“The inquiry should not be misconstrued as a reflection on
the Company’s business performance, financial condition, operational integrity,
or regulatory standing,” the company said.
While the company did not state the nature of the inquiry
and the foreign jurisdiction, the fintech clarified that the matter would not
affect its operations, regulatory standing or customer service in Nigeria and
its other markets.
The Softbank-backed fintech company had priced 16 million
American depositary shares (ADSs) at $19 each, valuing the proposed offering at
about $304 million. The price was at the lower end of its target range of $19
to $21.
Although the offering had implied a valuation of
approximately $4 billion, OPay withdrew it before the ADSs began trading on the
New York Stock Exchange (NYSE).
The development followed the company’s listing ceremony at
the NYSE on Friday, where co-chief executive officer Lars Boilesen celebrated
the planned debut as a milestone for OPay and Nigeria.
“We are proud to be the first Nigerian fintech to list in
the US on the New York Stock Exchange,” Boilesen said at the event.
He also outlined plans to take OPay’s financial services to
other African countries where access to banking remains limited.
According to the company’s IPO prospectus, OPay had about 50
million monthly active users as of July 31.
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