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(Bloomberg) — PayPay Corp. and an arm of SoftBank Group Corp. are seeking to raise as much as $1.1 billion in the digital payments firm’s US IPO, in what would be the biggest-ever listing for a Japanese company on a US stock exchange.
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Tokyo-based PayPay is offering 31.1 million American depositary receipts, while an affiliate of SoftBank Vision Fund II, an investment arm of the Japanese conglomerate, is selling 23.9 million ADRs, according to a filing with the US Securities and Exchange Commission Monday. The ADRs, which each represent one common share, are being offered for $17 to $20 each.
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PayPay had delayed the start of formal marketing amid uncertainty over conflict in the Middle East, a person familiar with the matter said earlier.
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At the top of the price range, PayPay would have a market value of about $13.4 billion based on the outstanding shares listed in its filings. PayPay was seeking a valuation of more than $10 billion, although SoftBank founder Masayoshi Son had pushed for a valuation as high as $20 billion.
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Abu Dhabi Investment Authority and a unit of Qatar Investment Authority, along with an arm of payments giant Visa Inc. agreed to buy as much as $220 million worth of shares in aggregate, the filing shows.
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The filing came as markets were rattled by the US and Israel launching airstrikes on Iran over the weekend, sending energy prices and bond yields surging. Some companies are forging ahead with IPOs where plans are well advanced.
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The business had a profit of ¥103.3 billion ($656 million) on ¥278.5 billion revenue in the nine months ended December versus a profit of ¥28.96 billion on revenue of ¥220.4 billion in the same period a year earlier, according to the filing.
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PayPay originated in 2018 as a joint venture with Vision Fund-backed Indian payments company Paytm. Shortly after launch, the company zoomed past Rakuten Group Inc.’s Rakuten Pay in capturing users, thanks to heavy marketing, aggressive subsidies and SoftBank’s support in signing on merchants around Japan. As of December, the number of PayPay users exceeded 72 million in a country of roughly 123 million.
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QR codes accounted for 9.6% of Japan’s total cashless transactions in 2024, up from 0.2% in 2018, according to the Economy Ministry. The share held by credit cards stood at 82.9%, but that portion has been shrinking.
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PayPay, which is majority-owned by SoftBank Group and SoftBank Corp., has been stepping up efforts to expand overseas ahead of the global offering. PayPay last year began making its service accessible in over 2 million shops in South Korea for Japanese customers. In February the company announced a partnership with Visa to explore opportunities in the US.
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The IPO comes as SoftBank monetizes more assets to finance new investments in artificial intelligence. The tech investor said it divested nearly $13 billion worth of T-Mobile US Inc. shares between June and December alone.
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SoftBank Group is expected to control about 92% of the votes in PayPay following the IPO, the filing shows.
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The offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co., Mizuho Financial Group and Morgan Stanley, the filing shows. The company is expected to debut on the Nasdaq Global Select Market under the symbol PAYP.
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