PayPay Corp, the Japanese digital payments provider backed by SoftBank Group, has filed confidentially for an initial public offering (IPO) in the United States.
The company is expected to seek a valuation of at least USD 10 billion, according to sources familiar with the matter cited by Yahoo Finance. If confirmed, the deal could become one of the largest stock market debuts in the US by a Japanese firm.
The application was submitted in the form of draft registration documents for the sale of American depositary receipts. Details such as pricing, the number of shares to be issued, and the timetable for the listing have not yet been finalised. SoftBank stated that the listing remains subject to regulatory review by the US Securities and Exchange Commission, as well as broader market conditions.
Background on PayPay’s development
PayPay was launched through a collaboration with Paytm, a former portfolio company of SoftBank’s Vision Fund. The app has since grown to become Japan’s leading QR-code payments service. Local media reported that a transaction last year valued PayPay at approximately USD 7 billion, highlighting a significant rise in expectations since then.
SoftBank Corp. will retain its majority stake in PayPay following the offering, according to the company’s statement. Officials also said they do not anticipate the move will have a material effect on SoftBank’s consolidated earnings.
The filing comes at a time when SoftBank Group has been selling portions of its holdings to raise capital for new investments in artificial intelligence. Recent activity has included the sale of about USD 3 billion worth of shares in T-Mobile US. Earlier this month, Reuters reported that investment banks had already been appointed to handle PayPay’s planned US debut.
