SoftBank Group-backed PayPay priced its U.S. initial public offering at $16 per share on Wednesday, falling below its initial target range. The IPO, influenced by market uncertainty surrounding the U.S.-Israeli war with Iran, raised approximately $880 million through the sale of 55 million American depositary receipts. This valuation places the Japanese digital wallet provider at $10.7 billion. PayPay confirmed the pricing details in an official statement following earlier reports.
Reuters reported that PayPay was likely to price the IPO at the lower end of its $17 to $20 target range. The company briefly delayed the launch of its roadshow to reassess market conditions before resuming. Visa, the Abu Dhabi Investment Authority, and a subsidiary of the Qatar Investment Authority are anchoring the IPO, committing to purchase up to $220 million of PayPay’s shares upon its debut.
PayPay, founded in 2018 as a joint venture between SoftBank and Yahoo Japan, is now one of Japan’s leading digital wallets. The company entered the market by waiving transaction fees for small and medium-sized merchants to promote adoption. PayPay would be the first U.S. listing of a SoftBank majority investment since Arm Holdings’ IPO in 2023.
The company plans to list on the Nasdaq under the ticker symbol “PAYP.” Goldman Sachs, J.P. Morgan, Mizuho, and Morgan Stanley are serving as joint book-running managers for the offering. The U.S. IPO market is expected to rebound, with Goldman Sachs forecasting proceeds could quadruple by 2026.
