OPay is targeting a valuation of up to $4.42 billion in its planned US initial public offering, the digital payments company announced on Friday. The Nigeria-focused firm aims to raise up to $366 million by selling roughly 16 million American Depositary Shares priced between $19 and $21 each. The move comes as OPay seeks to tap into growing demand for digital financial services across emerging markets.
Founded in 2018, OPay offers digital financial services including payments, money transfers, savings and loans. The company currently operates in Nigeria, Indonesia, Egypt and Pakistan. According to its IPO prospectus, OPay had approximately 50 million monthly active users as of July 31. The firm previously raised $400 million in 2021 at a valuation of $2 billion, meaning the new target valuation represents a more than doubling of its worth.
OPay was founded by Chinese billionaire Yahui Zhou, who also established Beijing Kunlun Tech, a Chinese gaming company that previously owned dating app Grindr. Nigeria has established itself as one of Africa's leading fintech markets, producing major companies including Moniepoint, Flutterwave and Interswitch, according to data from Tracxn. The country is the world's sixth-most-populous nation.
The IPO timing reflects broader market challenges. The US IPO market is currently facing renewed pressure from higher inflation and a selloff in artificial intelligence-related stocks, which has dampened investor appetite for new listings and led several companies to postpone their listing plans.
For Nigerian investors and savers, OPay's US listing could expand access to digital financial services and increase competition in the emerging fintech sector that already serves millions of users across the country.