Nigerian-focused payment bank, OPay, is making plans for an Initial Public Offering (IPO) in the United States this year, as per Bloomberg on Friday.
The publication reported that the company is planning to list in the US and is seeking a valuation of about $4 billion, citing private individuals familiar with the process.
The company may sell the shares later this year, the sources said.
As part of the plans, OPay is working with Citigroup Inc., Deutsche Bank AG, and JPMorgan Chase & Co. to tidy up all it needs for the public offering of its shares.
OPay is one of Nigeria’s big three players that dominate retail payments as well as agent banking (POS), which is the largest volume segment in Nigeria. Others include PalmPay and Moniepoint. Of the big three, OPay and Moniepoint are unicorns (meaning they are privately held startups valued at over $1 billion).
Driven by its early adoption, scale, extensive distribution network, and high transaction volumes since it entered the Nigerian market in 2018, the Opera-owned fintech-oriented company boasts tens of millions of users and operates one of the largest agent networks in Nigeria, enabling widespread access to financial services, especially in underserved areas. Its strong presence in everyday financial transactions, ranging from transfers to bill payment, has made it one of the most visible and frequently used fintech platforms in the country.
OPay, founded by Chinese tycoon Mr Yahui Zhou, raised $400 million in 2021 at a valuation of $2 billion. The company was backed by SoftBank Vision Fund and Sequoia Capital, as well as Long-Z Capital, the venture arm of Chinese food-delivery giant Meituan. It was also supported by other investors like DragonBall Capital and 3W Capital.
The fintech earlier announced two funding rounds in 2019 — $50 million in June and a $120 million Series B in November.
OPay, with its latest move, joins Airtel Africa Plc in planning to sell its mobile money business’s shares for $4 billion.
