What happened
OPay pulled its offering just as trading was set to begin, saying it would not move ahead with the deal now. In its Saturday comments to Bloomberg, the company said, "After careful consideration and discussions with the underwriters, the company determined that not proceeding with the offering at this time would be the most prudent course of action." It also said, "As a result, the offering will not be completed, and the company's ADSs will not commence trading on the New York Stock Exchange as previously scheduled."
By about 2 p.m. in New York on Friday, indications showed the American Depositary Receipts would open in a $16.25 to $16.75 range, one day after they were priced at $19. They ultimately did not start trading.
What the company said
OPay described the regulatory review as tied to "a jurisdiction that is immaterial to the company's core business operations," and emphasized, "OPay wishes to emphasize that this development should not be misconstrued as a reflection on the company's business performance, financial condition, operational integrity, or regulatory standing." The company added, "The matter relates to an inquiry in a foreign jurisdiction, which is being addressed through the appropriate channels."
Who was on the deal
Citigroup Inc., Deutsche Bank AG and Standard Bank were the lead banks on the IPO. Standard Bank pointed inquiries back to OPay. Citi offered no comment, and Deutsche Bank did not promptly reply to a request for comment.
SoftBank Group Corp. backs OPay, which had been set up for one of the year's standout emerging-market fintech flotations in New York, at an expected valuation of about $4 billion.
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The business and the investor take
In Nigeria's rapidly growing digital payments market, OPay says it leads the field and currently reaches over 50 million users. It also stated that its dedication to Nigeria is unchanged and that it will keep ramping up investment in the country.
For portfolios, the pullback removes a high-profile fintech listing from near-term pipelines and keeps these ADRs off screens for now. If and when the inquiry clears, attention will shift back to execution and pricing momentum.
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