OPay, a leading digital financial services company in Nigeria, has withdrawn its planned $304 million US initial public offering. The decision was made on Friday, following a regulatory inquiry by a foreign jurisdiction. According to Reuters, the inquiry is related to a jurisdiction that is immaterial to OPay's core operations. The company had aimed to secure a market capitalisation of over $4 billion and list on the NYSE under the ticker symbol "OPay".
The regulatory inquiry, which OPay did not identify, prompted the company to withdraw its IPO plans. Despite this, OPay expressed confidence that the matter would be resolved satisfactorily in the near future. The company emphasised that the inquiry should not be misconstrued as a reflection of its business performance, financial condition, operational integrity, or regulatory standing. OPay's operations, regulatory standing, and customer service in Nigeria and other markets are expected to remain unaffected.
OPay, founded in 2018, provides digital financial services across emerging markets, including Nigeria and Indonesia. Its app offers a range of services, including payments, money transfers, savings, and loans, catering to economies with limited access to traditional banking. The company's growth has been significant, with a $1 billion revenue run rate achieved in the second quarter of 2026, representing 137 per cent year-on-year growth.
In the first six months of 2026, OPay recorded a 19 per cent net margin. The company had previously raised $400 million in 2021 at a valuation of $2 billion. As of July 31, OPay had about 50 million monthly active users, according to its IPO prospectus. Citigroup, Deutsche Bank, Standard Bank, and CICC were among the underwriters for the planned IPO.
The withdrawal of the IPO does not affect OPay's operations in Nigeria or its other markets. The company remains committed to providing digital financial services to its customers. OPay's growth trajectory and financial performance have been impressive, with a significant increase in revenue and user base.
The regulatory inquiry, although not specified, does not appear to have a material impact on OPay's core operations. The company's management expressed confidence that the matter would be resolved soon, without any significant consequences for the business. OPay's focus remains on delivering digital financial services to its customers across emerging markets.
OPay's decision to withdraw the IPO was made to address the regulatory inquiry. The company is expected to revisit its IPO plans once the matter is resolved. For now, OPay continues to operate and grow its digital financial services business in Nigeria and other markets. The company's long-term prospects remain positive, driven by its innovative services and expanding user base.
Key points
- OPay withdraws $304m US IPO due to regulatory inquiry
- Inquiry is related to a jurisdiction immaterial to OPay's core operations
- OPay expects the matter to be resolved satisfactorily in the near future
