Nigerian fintech OPay has called off its planned $304 million US IPO just before its shares were due to begin trading on the New York Stock Exchange. The company said the decision followed a regulatory inquiry concerning a jurisdiction with limited impact on its operations, but did not identify the regulator or the subject of the inquiry. OPay and the underwriters have agreed to terminate the underwriting agreement.
OPay withdraws after setting a $19 offer price
OPay announced early Friday that it had priced the offering at $19 a share, the bottom of its previously disclosed $19-to-$21 range. Despite the pricing announcement and planned trading schedule, the shares never began trading on the NYSE.
In a Form 6-K filed with the US Securities and Exchange Commission, OPay said that after considering the inquiry and consulting with underwriters, it had concluded that not proceeding with the offering was the prudent course for now. The company said it expected the inquiry to be resolved satisfactorily in the near future, but did not provide details or name the regulator. In a social media post, OPay said it continued to serve customers and business partners as usual while the inquiry remained ongoing.
Withdrawing an IPO after pricing is unusual, though not without precedent. Matthew Kennedy, senior IPO market strategist at Renaissance Capital, said the jurisdiction involved could be a smaller market for OPay, such as Egypt or Pakistan, or a country where it has subsidiaries, including the United Arab Emirates or the United Kingdom. He also cited a possible connection to a potential partnership between OPay and Standard Bank. These were possibilities raised by Kennedy, not reasons confirmed by OPay.
Standard Bank had planned an investment of up to $200 million
OPay's F-1 registration statement said Standard Bank had agreed to invest up to $200 million by purchasing shares. Its stake was to be calculated under a formula and capped at 4.99% after the IPO. Stanbic Africa Holdings Limited, a subsidiary of Standard Bank, signed a memorandum of understanding with OPay in August. Lungisa Fuzile, Standard Bank's head of Africa business, had been expected to join OPay's board after the listing.
Citigroup, Standard Bank of South Africa Limited and Deutsche Bank's Hong Kong branch were named as joint book-running managers for the offering. Standard Bank and Deutsche Bank did not respond to requests for comment, while Citigroup declined to comment. With the underwriting arrangements terminated, the proposed Standard Bank investment and Fuzile's planned board appointment did not go ahead as part of this IPO.
Indications pointed to a weaker opening
OPay shares were indicated to open at $16.25 to $16.75 on Friday afternoon, below the $19 offer price, but trading had not begun. Kennedy said a sharp sell-off in artificial intelligence and technology stocks on Friday formed part of the market backdrop. Given the early indications, he said, investors who might have bought into the offering were unlikely to be especially disappointed by its withdrawal.
OPay first filed for an IPO on October 9 and amended its filing on October 23 to add the $19-to-$21 price range. The company began as a payments business in 2018. Previously disclosed information put its user base at about 50 million across Nigeria, Egypt, Pakistan and Indonesia.
In its first financial disclosures, OPay reported net income of $91 million and revenue of $467 million for the first half of 2026. The company has previously raised more than $270 million from investors including SoftBank, IDG Capital, HSG, GSR Ventures and Source Code Capital.
The regulator and scope of the inquiry remain undisclosed, leaving the IPO pricing, proposed investment and board arrangements unresolved. OPay says its business continues to operate as usual; the status of the inquiry will determine whether and when it revisits a US listing.