OPay Limited has withdrawn its planned $304 million initial public offering (IPO) in the United States, citing an inquiry in an unnamed foreign jurisdiction.
The fintech company said it had mutually agreed with its underwriters to terminate the underwriting agreement signed on October 29, 2026, effectively cancelling the planned listing on the New York Stock Exchange.
According to Reuters, OPay had priced 16 million American depositary shares at $19 each, the lower end of its proposed range of $19 to $21 per share. The offering would have raised approximately $304 million and valued the company at about $4 billion.
In a statement, OPay said the decision followed careful consideration and discussions with its underwriters, adding that it considered withdrawing the offering the most prudent course of action at this time.
The company described the jurisdiction involved in the inquiry as immaterial to its core business operations and expressed confidence that the matter would be resolved satisfactorily in the near future.
However, OPay did not identify the jurisdiction, the regulator involved or the nature of the inquiry. It said it was addressing the matter through appropriate channels and engaging relevant stakeholders to facilitate an early resolution.
The fintech firm also cautioned against interpreting the withdrawal as a reflection of its business performance, financial condition, operational integrity or regulatory standing.
The planned IPO would have opened OPay to public investors in the United States, with the American depositary shares representing approximately 7.6 per cent of its expected share capital after the offering.
Its amended prospectus disclosed non-binding indications of interest worth up to $270 million from nine investors. Of that amount, $80 million came from existing shareholders or investment firms linked to them, while the remaining $190 million came from other prospective investors. The indications did not constitute binding commitments to purchase shares.
OPay’s registration statement filed with the United States Securities and Exchange Commission showed significant growth in revenue and profitability.
The company’s revenue rose to $536.3 million in 2025 from $205.7 million in 2024, while it recorded a net profit of $72.5 million, reversing a loss of $50.8 million in the previous year.
Its performance strengthened in the first half of 2026, when revenue reached $467.1 million and net income stood at $90.9 million.
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Transaction volumes and user numbers also increased. OPay’s gross transaction value climbed to $358 billion in 2025 from $166.2 billion in 2024, while its monthly active users rose from 25.1 million to 39.3 million. By July 31, 2026, the company reported 50.1 million monthly active users.
Nigeria remains OPay’s largest market, accounting for 88.1 per cent of its revenue in 2025 and 89.5 per cent in the first half of 2026.
Lending is a major contributor to its earnings, with loan financing services generating $260.3 million in 2025, nearly half of its total revenue. The company, however, recorded $121.3 million in provisions for expected credit losses that year.
The prospectus showed that loans overdue by more than 90 days accounted for 5.2 per cent at the end of 2025, falling to 4.3 per cent as of June 30, 2026.
The withdrawal also leaves uncertainty over arrangements connected to the proposed listing, including a concurrent private placement involving Stanbic Africa Holdings, part of Standard Bank Group.
Stanbic Africa Holdings had agreed to purchase up to $200 million worth of shares, subject to the completion of the offering and regulatory approvals. Standard Bank was also among the underwriters, alongside Citigroup, Deutsche Bank and CICC.
A secondary listing on the Nigerian Exchange had been planned to follow OPay’s debut on the New York Stock Exchange.
OPay said it would provide further updates when material developments occur. The company has not announced a new timeline for the proposed listing.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
