OPay Pulls Its $304 Million NYSE IPO Hours After Pricing, Citing a Foreign Regulatory Inquiry

OPay, one of Nigeria's best-known payment apps, rang the opening bell at the New York Stock Exchange and then pulled its listing within hours. On 30th October, the company priced its offering at $19 a share, and then withdrew the $304 million IPO after a regulatory inquiry in a foreign jurisdiction that it has not named. Shares never traded under the ticker OPAY.

This is the latest turn in a story PINCHED has followed since OPay filed for a New York IPO on 9th October, a plan that also included a possible secondary listing on the Nigerian Exchange and up to $200 million from Stanbic Africa Holdings.

What Happened

OPay priced 16 million American depositary shares at $19 each, the bottom of its $19 to $21 range, which would have raised about $304 million at a valuation of around $4 billion. The NYSE had certified the listing on 27th October, and the company's executives rang the opening bell. The deal had been due to close on 2nd November.

Hours after pricing, OPay announced the offering would not be completed. TheCable and Bloomberg also carried the news that it cited a foreign regulatory inquiry.

What OPay Says About the Inquiry

The company called the inquiry immaterial to its core operations and said it expects to resolve it satisfactorily soon. It also said the matter should not be read as a reflection on its business performance or financial condition, and that its Nigerian operations and customer service are unaffected. Neither the regulator nor the subject of the inquiry has been disclosed.

The Banks and Investors Involved

Citigroup, Deutsche Bank, Standard Bank and CICC were the underwriters. Nine investors had indicated interest in up to $270 million of shares, and Stanbic Africa Holdings, part of Standard Bank, had agreed to buy up to $200 million in a private placement that depended on the IPO being completed. SoftBank's entities held a 6.6% stake before the offering.

What It Means for Nigerian Users

For OPay customers, the company's statement is the clearest guide: services in Nigeria continue as normal.

Frequently Asked Questions

Why Did OPay Withdraw Its IPO?

OPay said a regulatory inquiry in an unnamed foreign jurisdiction was behind the decision. It called the inquiry immaterial to its core operations and expects to resolve it soon.

How Much Was the OPay IPO Worth?

It was priced at $19 a share for 16 million American depositary shares, about $304 million, at a valuation of around $4 billion.

Is OPay Still Working in Nigeria?

Yes. OPay says its Nigerian operations and customer service are unaffected.

Will OPay List on the NYSE Later?

OPay says it expects the inquiry to be resolved satisfactorily soon. The offering will not be completed, and the shares will not trade as scheduled.