Africa-Focused OPay Is Said to Halt US IPO After China Inquiry

China made eleventh-hour inquiries into OPay Ltd., prompting the Nigeria-focused payments company to halt its $300 million initial public offering in New York hours after pricing it, according to people familiar with the matter.

OPay has no operations in China and generates no revenue there, said the people, who asked not to be identified because the information is private. Its only connection to the nation is through its founder Zhou Yahui, a Chinese businessman, the people said.

Zhou also founded Kunlun Tech, a Chinese technology firm that previously owned the dating app Grindr, and was part of a group that bought part of Norway’s Opera Ltd. in 2016.

Talks between the parties are ongoing, and it’s unclear if the matter can be resolved, they said.

A representative for OPay declined to comment. The China Securities Regulatory Commission didn’t immediately respond to a request seeking comment.

Read more: OPay Shares Fail to Trade After Raising $304 Million in US IPO

The probe into a company without any business on the mainland shows Beijing’s increasing attempts to impact global firms. Earlier this year, it forced Meta Platforms Inc. to unwind a $2 billion acquisition of artificial intelligence startup Manus.

At stake for OPay is a $4 billion valuation of the company, while the IPO was expected to provide a boost for Africa’s venture-backed technology sector. The industry has struggled with fundraising and muted deal activity since the post-pandemic slowdown in private capital markets.

OPay is headquartered in Singapore and it conducts most of its business in Nigeria. The company, which has about 50 million monthly active users, also has customers in Egypt, Indonesia, and Pakistan.

Read More: SoftBank-Backed OPay Halts IPO to Respond to Regulatory Inquiry

OPay said halting the listing was linked to a regulatory inquiry from a foreign jurisdictionm and that it shouldn’t be seen as a reflection on its business performance, financial condition or regulatory standing.

Citigroup Inc., Deutsche Bank AG and Standard Bank Group Ltd. are working on OPay’s listing plans, after China International Capital Corp. was taken off the deal.

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