OPay sets out a proposed 320 million dollar US share sale
OPay has set terms for a proposed US public offering that would raise 320 million dollars at the midpoint of its price range, implying a 4.2 billion dollar valuation. The Singapore-based company operates digital financial services in Nigeria and other emerging markets. It also plans a concurrent private placement with a Standard Bank subsidiary, with pricing expected during the week of October 26.
Economics & Markets··Evening
The proposed share sale implies a 4.2 billion dollar valuation
OPay, the Singapore-based digital banking and financial technology company operating in Nigeria and other emerging markets, announced terms for a proposed US initial public offering on October 23. It plans to sell 16 million American depositary shares at 19 to 21 dollars each. At the 20 dollar midpoint, the offering would raise 320 million dollars and value the company at 4.2 billion dollars.[1], [2]
Each depositary share represents ten ordinary shares in the company. The transaction is intended for the New York Stock Exchange, with pricing planned during the week of October 26. Citigroup, Deutsche Bank Securities, Standard Bank and China International Capital Corporation are the joint bookrunners responsible for managing the share offering. The terms describe a proposed sale whose proceeds depend on the eventual pricing.[1]
Investor interest accompanies a separate private placement
Cornerstone investors have indicated interest in purchasing up to 270 million dollars of shares, roughly 84.4 per cent of the proposed public offering. OPay also plans a concurrent private placement of 200 million dollars in depositary shares with Stanbic Africa Holdings, a Standard Bank subsidiary. The private placement is a separate proposed transaction alongside the public offer; the cornerstone indications concern potential purchases in the public sale.[1]
OPay’s services extend beyond Nigeria
The business was founded in 2017 and booked 806 million dollars of revenue in the twelve months ended June 30. Outside Nigeria, its Indonesian operations focus on loan facilitation. In Egypt it provides merchant-acquiring services, bringing businesses into payment networks. In Pakistan its activities include merchant acquisition and consumer wallets. These operations sit within the emerging-market financial platform seeking the US listing.[2]
OPay is backed by SoftBank. Its prospectus also describes app-use rankings for its financial platform, using a daily-active-user comparison dated July 31 and a regional monthly-active-user comparison for the six months ended June 30. Those rankings are company disclosures. The announced financing timetable places the next transaction milestone in the week of October 26, when bankers plan to price the public offering.[1]
