OPay raises $304m in US IPO at $4bn valuation

SoftBank-backed fintech OPay has raised $304 million in its US initial public offering. The Nigeria-focused company sold 16 million American depositary shares at $19 each, giving it a valuation of about $4 billion.

The shares were priced within its targeted range of $19 to $21. OPay will list on the New York Stock Exchange under the ticker symbol OPAY. The company said on Friday, October 30, that it was tapping public markets to position itself for growth in digital finance across emerging economies.

IPO details and ownership

SoftBank entities held a 6.6% stake in OPay before the offering, according to the filing. Citigroup, Deutsche Bank, Standard Bank and CICC were among the underwriters for the IPO.

OPay was founded in 2018 by Chinese billionaire Yahui Zhou. Zhou also established Beijing Kunlun Tech, a Chinese gaming company that previously owned dating app Grindr. The company provides digital financial services across emerging markets, including Nigeria and Indonesia. Its platform offers payments, money transfers, savings and loans through a single application. It addresses gaps in banking infrastructure in emerging economies, where limited access to traditional financial services can make everyday transactions difficult.

Users and earlier funding

OPay had approximately 50 million monthly active users as of July 31, according to its IPO prospectus. The company raised $400 million in 2021 at a valuation of $2 billion. Its latest IPO values it at approximately $4 billion.

The listing comes amid persistent inflation and a selloff in artificial intelligence-related stocks, which have weighed on investor sentiment. Market volatility and concerns over valuations have prompted several companies to delay their listing plans, making it more difficult for issuers to attract demand and secure favourable pricing.

What it means for Nigerian fintech

The NYSE listing gives OPay a fresh pool of public capital as it competes in Nigeria’s crowded digital payments market and other emerging economies. For Nigerian businesses and consumers, the IPO puts a global market valuation on a platform that handles everyday payments, transfers, savings and loans. It also gives local investors a new benchmark for how international markets price African fintech growth.