OPay has withdrawn its planned $304m initial public offering on the New York Stock Exchange following a regulatory inquiry in an unnamed foreign jurisdiction, halting its proposed entry into the US stock market.
The Nigeria-focused fintech company announced the decision on Friday, barely a day after pricing 16 million American depositary shares at $19 each, valuing the business at approximately $4bn.
In a statement, OPay said it had mutually agreed with its underwriters to terminate the underwriting agreement signed on October 29. Its shares, which were scheduled to begin trading under the ticker symbol OPAY, will therefore not debut on the exchange.
The company described the regulatory inquiry as relating to a jurisdiction that was immaterial to its core operations but did not identify the regulator or disclose the nature of the investigation.
OPay said it expected the matter to be resolved satisfactorily in the near future, insisting that the inquiry should not be interpreted as a reflection of its business performance, financial condition or operational integrity.
It added that the development would not affect its operations, regulatory standing or customer service in Nigeria and other markets.
The withdrawal came after the company had completed preparations for the offering, which was expected to raise $304m at the lower end of its projected share price range of $19 to $21.
The abandoned IPO also raises questions about the timing of OPay’s proposed secondary listing on the Nigerian Exchange, which its board and shareholders had approved.
The company had indicated that the Nigerian listing would follow the completion of its primary US listing. However, it has not announced whether the withdrawal will affect those plans.
Founded in 2018, OPay provides digital payment services, money transfers, savings and loans in emerging markets, including Nigeria and Indonesia.
The company had about 50 million monthly active users as of July 31, according to its IPO prospectus. Japanese technology investor SoftBank held a 6.6 per cent stake in OPay before the proposed offering.
OPay said it remained committed to investing in Nigeria's digital financial services sector and would provide further updates when there were material developments.
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