OPay Halts IPO After Regulatory Probe Emerges on NYSE Bell-Ringing Day
New York, NY – Nigerian fintech giant OPay, backed by SoftBank, rang the opening bell at the New York Stock Exchange (NYSE) on October 30th, only to see its shares fail to trade and subsequently be halted later that afternoon. The company announced on October 31st that it had terminated its underwriting agreement with its bookrunners due to a regulatory investigation in a “non-core market,” effectively scuttling its planned $304 million initial public offering (IPO).
A Troubled Debut
OPay’s shares were scheduled to commence trading on the NYSE on Friday, October 30th, Eastern Time. However, the first trade never materialized throughout the day. By 3:30 PM Eastern Time on October 30th (3:30 AM Eastern Time on October 31st, Taiwan time), the NYSE halted trading, citing “news pending.”
The company, which counts SoftBank among its investors, issued a statement the following day confirming that a regulatory authority in one of its markets had launched an investigation. OPay stated it had mutually agreed with its underwriters to terminate the underwriting agreement, bringing an abrupt end to its IPO, which had priced on October 29th and aimed to raise $304 million.
IPO Details and Market Reaction
According to Nairametrics, OPay finalized its IPO pricing on October 29th, Eastern Time. The company offered 16 million American Depositary Shares (ADS) at $19 per share, the lower end of its initial price range of $19 to $21. This pricing valued the company at approximately $4 billion and secured the $304 million in capital.
ADS are a common mechanism for foreign companies to list on U.S. exchanges, with investors purchasing certificates representing underlying shares. The stock was set to trade under the ticker symbol OPAY. A video posted on the NYSE’s X account on October 30th showed OPay executives ringing the opening bell, accompanied by a DJ booth branded with OPay’s logo. This post has since been removed.
Following the bell-ringing ceremony, the stock’s opening was significantly delayed. By 2:00 PM Eastern Time on October 30th (2:00 AM Eastern Time on October 31st, Taiwan time), indicative opening prices ranged between $16.25 and $16.75, representing a decline of 11.8% to 14.5% below the $19 offering price. This meant that investors who subscribed at the IPO price would have faced an immediate paper loss.
At 3:30 PM Eastern Time, the NYSE issued a trading halt with no record of any transactions. The broader U.S. tech market also experienced a significant downturn on the same day, with the Nasdaq 100 index falling 3.5%, marking its largest single-day drop since early June.
OPay’s Statement and Investigation
In a statement released on Saturday, October 31st, and published by Nigerian tech media outlet Techeconomy, OPay explained that a regulatory investigation had been initiated in a “jurisdiction that is not material to the company’s core business.” Consequently, the company and its underwriters mutually agreed to terminate the underwriting agreement signed on October 29th, and the ADS would not list on the NYSE as planned.
“The company is confident that the investigation will conclude favorably in the near future, but after careful consideration and discussion with the underwriters, the company believes it is most prudent not to proceed with the offering at this time,” the statement read. OPay did not disclose the specific country or region involved in the investigation, nor did it provide details about the nature of the probe.
OPay emphasized that the situation is unrelated to its business performance, financial condition, or regulatory standing. Its operations in Nigeria, Indonesia, Egypt, and Pakistan remain unaffected. The company stated it would provide further updates as significant developments occur. According to anonymous sources cited by Nairametrics, this marks the first instance of an IPO being withdrawn after the opening bell ceremony on the NYSE, though this claim is unverified.
Underwriters and Company Background
The IPO was reportedly led by Citigroup, Deutsche Bank, and South Africa’s Standard Bank, with China International Capital Corporation (CICC) also listed as an underwriter by Reuters on October 23rd. The original plan included a settlement date of November 2nd, with underwriters holding an option to purchase up to an additional 2.4 million ADS within 30 days.
Founded in 2018 by Chinese billionaire Zhou Yahui, who also founded the gaming company Kunlun Tech and previously held a stake in Grindr, OPay’s IPO filing revealed that a SoftBank entity held a 6.6% stake prior to the offering.
OPay had also intended to pursue a secondary listing on the Nigerian Exchange (NGX) following its NYSE debut, a plan that had received approval from its board and shareholders, according to Nairametrics. The statement released on October 31st did not mention this secondary listing plan.
OPay’s IPO Halt: Key Questions Answered
Why was OPay’s IPO halted?
OPay announced on October 31st that a regulatory investigation in a non-core market led to the termination of its underwriting agreement with its bookrunners, preventing the ADS from listing as scheduled.
Did OPay shares trade on the NYSE?
No. According to Bloomberg, indicative opening prices on October 30th ranged between $16.25 and $16.75, below the $19 offering price. Trading was halted by the NYSE at 3:30 PM Eastern Time with no transaction records.
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