OPay Raises $304m In US IPO

OPay has raised $304 million by selling 16 million American depositary shares at $19 each. through its initial public offering (IPO) in the United States, putting its valuation at approximately $4 billion.

The company marked the milestone on Friday by ringing the opening bell at the New York Stock Exchange (NYSE), with its Co-Chief Executive Officer, Lars Rahbaek Boilesen, and Shamsuddeen Usman representing the fintech at the ceremony.

According to Reuters, OPay sold 16 million American depositary shares at $19 each, raising $304 million in the offering. The offer price was at the lower end of its targeted range of $19 to $21 per share.

The listing comes amid challenging market conditions, as persistent inflation and a selloff in artificial intelligence-related stocks have weighed on investor sentiment, prompting several companies to delay their listing plans.

Reuters reported that market volatility and concerns over valuations have made it more difficult for companies seeking to attract investor demand and secure favourable pricing.

Founded in 2018, OPay provides digital financial services across emerging economies, including Nigeria and Indonesia.

Its platform offers payments, money transfers, savings and loans through a single application, targeting markets where limited access to conventional banking services creates opportunities for digital financial service providers.

According to the company’s IPO prospectus, OPay had approximately 50 million monthly active users as of July 31, reflecting the scale of its customer base as it moves into the next phase of its expansion.