SoftBank-Backed OPay Eyes Up to $500 Million in New York Listing

SoftBank Group Corp.-backed OPay Digital Services Ltd. plans to raise about $500 million with its private placement and an initial public offering in New York, according to people familiar with the matter.

The total includes $200 million from a parallel private placement with Standard Bank Group Ltd., said the people, who asked to remain anonymous as the information is still private.

OPay declined to comment on the matter.

OPay is emerging as one of Africa’s most valuable fintech companies and a dominant player in Nigeria’s fast-growing digital payments sector, with more than 50 million active users monthly.

Read More: SoftBank-Backed OPay Wins $185 Million Standard Bank Placement

The listing of the company — which is also backed HSG, the China division of Sequoia Capital that separated from the investing giant in 2023 — will also involve the sale of new shares to raise funds, said the people.

The transaction will provide a valuation benchmark for the continent’s venture-backed technology sector, which has struggled with fundraising and muted deal activity since the post-pandemic slowdown in private capital markets.

Africa, which is home to the world’s youngest and most rapidly expanding population, has proven a breeding ground for fintechs looking to bridge a gap left by insufficient banking infrastructure.

OPay will provide US investors with an opportunity to gain exposure to one of the continent’s largest payments platforms and the digitization of financial services across Africa.

Citigroup Inc., Deutsche Bank AG, Standard Bank and China International Capital Corp. will be working on the listing, according to a Friday filing with the Securities and Exchange Commission. It’s expected before the end of the year, according to the people familiar with the transaction.

Sign up here for the daily Next Africa newsletter and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.