OPay Halts $300 Million US IPO After China Inquiry

In Short

OPay halted its planned $300 million US initial public offering after a Chinese regulatory inquiry, according to Bloomberg.

What Happened

OPay Ltd. paused its planned $300 million US IPO (initial public offering, a company’s first sale of shares to the public) just hours after setting the price for the listing.

Bloomberg reported, citing people familiar with the matter, that the trigger was a Chinese regulatory inquiry. This happened even though OPay has no business operations or revenue in mainland China.

Bloomberg said OPay’s only connection to China is through its founder, Zhou Yahui, a Chinese businessman.

The report links the inquiry to Zhou’s background. Zhou also founded Kunlun Tech, which previously owned dating app Grindr and led a group that bought part of Norwegian technology company Opera Ltd. in 2016.

OPay had earlier said the IPO suspension was due to a “regulatory inquiry involving a foreign jurisdiction.” The company also said the pause should not be interpreted as a reflection of its business performance, financial condition, or regulatory standing.

OPay is headquartered in Singapore and conducts most of its business in Nigeria. The company has approximately 50 million monthly active users and also serves customers in Egypt, Indonesia, and Pakistan.

Citigroup Inc., Deutsche Bank AG, and Standard Bank Group Ltd. are working on the proposed listing. The report says China International Capital Corp. was removed from the deal.

Why It Matters

For OPay, the halt shows how cross border regulatory attention can affect a listing plan, even when the company says it has no operations or revenue in the jurisdiction involved.

The Bloomberg report also frames the case as part of Beijing’s increasing attempts to influence global companies, despite the companies operating outside mainland China.