Nigerian focused fintech company OPay has withdrawn its planned $304 million initial public offering (IPO) on the New York Stock Exchange (NYSE) following a regulatory inquiry in an undisclosed foreign jurisdiction. The decision, announced on October 30, means the company’s American Depositary Shares will not begin trading as scheduled, halting its immediate plans to access the United States capital market. OPay had priced 16 million shares at $19 each, placing its proposed valuation at approximately $4 billion.nancial services, financial inclusion an
The company said the decision followed consultations with its underwriters, with both parties agreeing to terminate the underwriting agreement signed on October 29. Although OPay did not disclose the jurisdiction involved or the nature of the inquiry, it described the matter as relating to a jurisdiction that was immaterial to its core business operations. The fintech firm expressed confidence that the issue would be resolved satisfactorily in the near future and said it was engaging relevant stakeholders to facilitate an early resolution.
OPay also sought to reassure customers, merchants and business partners that the development would not affect its financial position, operational integrity, regulatory standing or service delivery. The company said its operations would continue normally in Nigeria and other markets where it operates, including Indonesia, Egypt and Pakistan. According to its IPO prospectus, OPay had approximately 50 million monthly active users as of July 31, highlighting the scale of its digital financial services business.
The withdrawal represents a setback to OPay’s immediate international fundraising ambitions and highlights how regulatory uncertainty can disrupt major transactions even after an offering has been priced. The development may also draw attention to the compliance, transparency and due diligence requirements facing African technology companies seeking international investment. OPay has maintained that its long term commitment to Nigeria remains unchanged, with plans to continue investing in digital fid the country’s growing digital economy.