Fintech company OPay has postponed its planned initial public offering (IPO) on the New York Stock Exchange (NYSE) following a regulatory inquiry in an undisclosed foreign jurisdiction.
The company said the decision was reached after discussions with its underwriters, resulting in the termination of their underwriting agreement.
OPay explained that the inquiry concerns a jurisdiction that is not material to its core business operations.
However, the company did not disclose the country involved, the regulatory authority conducting the inquiry or the specific issues being investigated.
The proposed offering involved 16 million American Depositary Shares (ADSs) priced at $19 each, which would have raised approximately $304 million and valued the company at about $4 billion.
The shares were expected to begin trading on the NYSE under the ticker symbol OPAY.
Despite the setback, OPay reassured customers and business partners that its operations in Nigeria remain unaffected.
The company said its services would continue normally across its markets, including Nigeria, Indonesia, Egypt and Pakistan.
OPay also expressed confidence that the regulatory inquiry would be resolved satisfactorily in the near future.
It reaffirmed its long-term commitment to Nigeria, stating that it would continue investing in the country’s digital financial services sector, supporting financial inclusion and contributing to the growth of the digital economy.
Sources: Reuters, The Guardian and Techpoint Africa. Reuters +2
