The initial public offering of SoftBank’s PayPay is likely to price around the low end of its marketing range as war in the Middle East roil markets, two people familiar with the matter said.
The IPO book was covered more than five times, one of the people said. It has now closed and pricing will be finalised after US market hours on Wednesday, the person said.
The Japanese payment app operator was offering 55 million American depositary shares, priced $17 to $20 apiece, a filing this month showed, targeting a valuation of up to $13.4 billion.
The people declined to be identified as the information is not public. PayPay declined to comment.
Tencent, Ant Group’s Alipay, and Alphabet’s Google have committed to invest in the IPO, one of the people said.
The companies did not respond to requests for comment.
PayPay has played a central role in encouraging Japanese consumers to move away from a preference for cash by offering rebates on its payments app.
However, it has had a bumpy path to an IPO. Its IPO roadshow was initially postponed after markets were jolted by conflict in the Middle East, Reuters reported last week.
It had already postponed the IPO last year during the U.S. government shutdown, which disrupted regulatory processes and delayed regulatory filing.
PayPay would mark the first U.S. listing of a SoftBank majority investment since the blockbuster IPO of Arm.
SoftBank took the chip designer public in 2023 at a valuation of $54.5 billion, and its market capitalisation has since risen to almost $130 billion.
PayPay plans to list on the Nasdaq under the symbol “PAYP”. Reuters first reported its plans for a U.S. listing in 2023.
Reuters
