OPay Raises $304m In US IPO

Nigerian-focused payments bank, OPay, has raised $304 million through its initial public offering (IPO) in the United States after selling 16 million American depositary shares at $19 each, valuing the fintech company at approximately $4 billion.

The company marked its stock market debut on Friday by ringing the opening bell at the New York Stock Exchange (NYSE), with its co-chief executive, Mr Lars Rahbaek Boilesen, and Mr Shamsuddeen Usman representing the company at the ceremony.

According to Reuters, the shares were priced at the lower end of OPay’s targeted range of $19 to $21, bringing the total proceeds from the offering to $304 million.

The listing comes amid challenging market conditions, as persistent inflation, volatility and a selloff in artificial intelligence-related stocks have weighed on investor sentiment, forcing some companies to delay their listing plans.

Founded in 2018, OPay provides digital financial services across emerging markets, including Nigeria and Indonesia. Its services include payments, money transfers, savings and loans through a single application.

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, reflecting the scale of its operations as it expands its presence in international markets.

SoftBank entities owned a 6.6 per cent stake in OPay before the offering, according to the filing.

Citigroup, Deutsche Bank, ⁠Standard Bank and CICC are among the offering’s underwriters.

OPay is listing on the NYSE under the OPAY symbol.

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Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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