OPay Limited recently announced the termination of its underwriting agreement and shelving of its planned New York Stock Exchange (NYSE) initial public offering (IPO). The company attributed this decision to a regulatory inquiry in a jurisdiction "immaterial" to its core business. Despite expressing confidence in a satisfactory resolution, OPay decided to pause the IPO. This move has sparked intense debate among investors, regulators, and capital-market practitioners in Lagos about the company's listing strategy.
The inquiry has raised questions about OPay's decision to pursue a primary listing on the NYSE, with its operations and revenue largely based in Nigeria. The company's plan was to list its American Depositary Shares (ADSs) on the NYSE, with a secondary listing on the Nigerian Exchange Limited (NGX) subject to market conditions and regulatory clearances. This approach has drawn criticism, with some arguing that a domestic listing would provide stronger alignment between the business and investors who understand its market realities.
A successful playbook for Nigerian businesses seeking global capital without severing local roots has been established by companies such as Seplat Energy Plc, Airtel Africa Plc, and Guaranty Trust Holding Company Plc. These companies have opted for dual listings on both local and international exchanges. Seplat Energy, for instance, dual-listed on the NGX and the London Stock Exchange (LSE) in 2014, raising approximately $535 million and valuing the company at about $1.9 billion.
Airtel Africa and GTCO followed similar paths, with Airtel Africa listing on the LSE in 2019 and subsequently on the NGX, while GTCO dual-listed on both exchanges in 2025. These companies have retained meaningful local ownership pathways, satisfied domestic regulators and policymakers, and accessed deeper international pools of capital. The dual structure has also mitigated some of the currency-translation and emerging-market discount risks associated with pure foreign listings.
OPay's different calculation, however, has raised concerns about its ownership structure and market alignment. The company's founder, Chinese billionaire Zhou Yahui, and its backer, SoftBank, have attracted extra scrutiny in Western markets sensitive to data privacy, governance, and capital flows involving Chinese-linked entities. This scrutiny may have contributed to the regulatory inquiry that led to the halt of the IPO.
David Adonri, vice chairman of Highcap Securities, has argued that a domestic listing would provide stronger alignment between OPay's business and investors who understand its market realities. Nigerian institutional investors, such as pension funds, insurance companies, and asset managers, are familiar with the agency-banking model, USSD transactions, and naira cash flows, which could reduce churn and strengthen the social licence to operate.
The halt of the IPO has sharpened questions about OPay's listing strategy rather than resolved them. While the company insists that the regulatory inquiry is confined to an immaterial foreign jurisdiction, market participants remain cautious. The outcome of the inquiry and OPay's future listing plans will be closely watched by investors, regulators, and capital-market practitioners in Lagos.
Key points
- OPay's halt of its $304m NYSE IPO has raised questions about its listing strategy and market alignment.
- The company's decision to pursue a primary listing on the NYSE despite its operations and revenue being largely based in Nigeria has drawn criticism.
- A successful playbook for Nigerian businesses seeking global capital without severing local roots has been established by companies such as Seplat Energy Plc, Airtel Africa Plc, and Guaranty Trust Holding Company Plc.
