NEW YORK, Oct 31 – Nigerian fintech company OPay has withdrawn its planned US initial public offering (IPO) following a regulatory inquiry in an unnamed foreign jurisdiction.
The development came after the company priced its IPO at US$19 per American Depositary Share (ADS). It had planned to sell 16 million shares, with the offering expected to raise US$304 million.
OPay had also planned to list on the New York Stock Exchange (NYSE) under the ticker symbol OPAY.
However, the company later disclosed an outstanding regulatory matter involving an additional approval requirement in a foreign jurisdiction. Reuters reported that OPay withdrew the IPO on Friday, Oct 30.
OPay IPO Valued the Company at About US$4 Billion
Before the withdrawal, the planned offering valued OPay at approximately US$4 billion.
The company priced its shares at US$19 each, at the lower end of its proposed range of US$19 to US$21.
The IPO involved 16 million ADSs. Each ADS represents shares in the company.
OPay had also given underwriters a 30-day option to purchase up to 2.4 million additional ADSs to cover possible excess demand.
Regulatory Issue Behind IPO Withdrawal
OPay said the regulatory matter involved an additional approval requirement in a foreign jurisdiction.
The company described the jurisdiction as unrelated to its core operations and said it expected the matter to be resolved.
However, the development affected the planned IPO process.
The withdrawal followed the earlier announcement of the share pricing and proposed NYSE listing.
OPay Serves More Than 50 Million Users
Founded in Nigeria in 2018, OPay operates a digital financial platform across Nigeria, Egypt, Pakistan and Indonesia.
The company says it serves more than 50 million users across these markets.
Its services include digital payments, money transfers, savings, credit and merchant services.
OPay aims to expand access to financial services in markets where many people remain underserved by traditional banks.
Source : PR Newswire | Rewritten By Minutesmy
