OPay Eyes Dual Listing Via IPO on Nigerian, US Stock Exchanges

By Adedapo Adesanya

Nigerian-focused payment bank, OPay, is planning to list its shares on the Nigerian Exchange (NGX), Nairametrics has reported.

According to the publication, the fintech company is expected to formally announce plans for listing on the local bourse soon.

The development comes as OPay prepares for a potential initial public offering (IPO) in the United States, where the company has reportedly been targeting a valuation of about $4 billion. It is working with Citigroup, Deutsche Bank and JPMorgan Chase on its proposed US IPO.

Citing sources, it reported that details of the newly proposed Nigerian listing, including its timing, offer size, valuation and the percentage of shares that could be made available to investors, are not yet public.

OPay is one of Nigeria’s big three players that dominate retail payments as well as agent banking (POS), which is the largest volume segment in Nigeria. Others include PalmPay and Moniepoint. All three companies are now unicorns, valued at over $1 billion.

This development comes after the NGX leadership raised worries about large fintechs generating significant revenue in Nigeria opting out of listing locally.

Earlier in August, the chief executive of NGX Group Plc, Mr Temi Popoola, urged President Bola Tinubu to support measures encouraging major companies to list their shares on the NGX.

Mr Popoola specifically cited OPay and PalmPay among fintechs considering overseas listings, arguing that Nigerian investors should also participate in the wealth being created.

OPay, founded by Chinese tycoon Mr Yahui Zhou, raised $400 million in 2021 at a valuation of $2 billion. The company was backed by SoftBank Vision Fund and Sequoia Capital, as well as Long-Z Capital, the venture arm of Chinese food-delivery giant Meituan. It was also supported by other investors like DragonBall Capital and 3W Capital.

The fintech earlier announced two funding rounds in 2019 — $50 million in June and a $120 million Series B in November.