SoftBank-backed African fintech giant OPay plans U.S. IPO, aiming to raise about $500 million, with a NYSE listing expected within the year.

OPay Digital Services, an African fintech company backed by SoftBank Group, is planning to raise about $500 million through an initial public offering (IPO) in New York and a concurrent private placement, according to people familiar with the matter. The transaction is expected to be completed by the end of this year and could become one of the most closely watched listings in Africa's fintech industry. The proposed $500 million total includes about $200 million in a private placement concurrent with Standard Bank Group, the people said, asking not to be identified because the information is not yet public. OPay declined to comment. OPay has grown into one of Africa's most valuable fintech companies and holds an important position in Nigeria's rapidly growing digital payments market. The company has more than 50 million monthly active users, making it one of the largest digital payment platforms in Africa. In addition to SoftBank Group, OPay's investors include Sequoia China. OPay's U.S. listing will also involve the issuance of new shares to raise additional capital, according to people familiar with the matter. For Africa's technology industry, which has faced a tighter financing environment in recent years, the deal is significant. Since the post-COVID cooling of global private capital markets, venture-backed technology companies in Africa have faced challenges including financing difficulties and sluggish deal activity. If OPay successfully lists, it will provide an important public-market valuation reference for African technology companies and could help rekindle international investor interest in the region's technology sector. Africa has one of the world's youngest and fastest-growing populations, but traditional banking infrastructure in some parts of the region remains underdeveloped, offering broad room for growth for fintech companies. In recent years, with the spread of smartphones and growing demand for digital financial services, fintech companies have been filling the market gap left by insufficient coverage of the traditional banking system through mobile payments, digital wallets and other financial services. As a major player in Nigeria's digital payments market, OPay's listing will also give U.S. investors an opportunity to invest in Africa's fintech industry, allowing them to share in potential growth opportunities from the expansion of Africa's payments market and the digital transformation of financial services. According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) last Friday, Citigroup, Deutsche Bank, Standard Bank and China International Capital Corporation will participate in OPay's listing. People familiar with the matter expect OPay to complete its U.S. listing plan by the end of this year. However, the specific timing of the offering, the size of the fundraising and the final valuation remain to be determined. If the IPO is completed smoothly, OPay will become another important case of an African fintech company entering the U.S. capital market, and its listing performance could also serve as an important indicator of international investors' interest in African technology companies.