OPay withdraws $304m U.S. IPO after foreign regulatory inquiry

Fintech says probe will not affect Nigerian operations, customer services

Opay has withdrawn its planned $304 million initial public offering (IPO) in the United States following a regulatory inquiry in an undisclosed foreign jurisdiction, halting a listing that would have valued the fintech company at about $4 billion.

The withdrawal came after the company priced 16 million American depositary shares (ADSs) at $19 each, the lower end of its target range of $19 to $21, ahead of its planned listing on the New York Stock Exchange (NYSE).

The company did not disclose the nature of the inquiry or identify the jurisdiction involved.

However, it described the matter as ‘immaterial’ to its core operations and said it should not be interpreted as a reflection of its business performance, financial condition, operational integrity or regulatory standing.

OPay also said the development would not affect its operations, regulatory standing or customer services in Nigeria and its other markets.

According to a report by Reuters, the decision came after a listing ceremony at the NYSE on Friday, where the company’s co-chief executive officer, Lars Boilesen, described the planned debut as a major milestone for the fintech firm and Nigeria.

The planned offering would have provided OPay with a listing on the US stock market under the ticker symbol OPay. However, the company withdrew the offering before its shares began trading on the exchange.

According to its IPO prospectus, OPay had about 50 million monthly active users as of July 31, reflecting its reach in digital financial services.