Nigerian Payments Firm OPay Withdraws $304M US IPO Due to Undisclosed Foreign Regulatory Inquiry
OPay abruptly withdrew its $304 million New York listing plan after pricing, citing an undisclosed foreign regulatory inquiry. The move undermines confidence in African fintech firms' ability to scale into major public companies and disrupts a key strategic partnership with Standard Bank.
According to Semafor, Nigerian payments company OPay abruptly withdrew its $304 million US initial public offering (IPO) on Friday. The company had priced its American depositary shares (ADS) at $19 each, the bottom of its target range, valuing the firm at just over $4 billion. However, trading never began; OPay and its underwriters terminated their agreement around 3:30 pm New York time, stating it was no longer prudent to proceed with the offering.
A key factor behind the withdrawal was an "undisclosed foreign regulatory inquiry." OPay did not identify the regulator or specify the subject of the investigation. This sudden development represents a setback for Nigeria's fintech sector and the broader African startup ecosystem, which has spent years trying to persuade global investors that its young, high-growth companies can scale into major publicly listed businesses that return funds to shareholders.
Per the F-1 filing, OPay had outlined plans for a secondary listing on the Nigeria Stock Exchange following the NYSE debut, aiming to give local investors access to a business generating nearly 90% of its revenue from Nigeria. However, the filing warned that shares traded in Lagos might not be exchangeable for the New York-listed ADS, potentially limiting liquidity and allowing prices to diverge.
A central pillar of the IPO was a broader strategic relationship with Standard Bank Group, Africa's largest lender by assets. Its subsidiary, Stanbic Africa Holdings, had agreed to invest up to $200 million, subject to a formula capping its stake at 4.99% of OPay post-offering. As part of the deal, Lungisa Fuzile, head of Standard Bank's Africa division, was expected to join OPay's board. The two companies also signed a non-binding memorandum of understanding to explore partnerships spanning payments, merchant acquisition, lending, remittances, and the distribution of selected banking products. OPay suggested in filings that it would leverage Standard Bank's infrastructure, regulatory expertise, and presence to expand across Africa.