NYSE IPO postponement will not affect business operations , says OPay
OPay has said the postponement of its planned New York initial public offering will not affect its business operations or customer services, separating the delayed share sale from the everyday financial services it provides.
The company said it chose to postpone the offering following a regulatory inquiry in an unnamed foreign jurisdiction, after discussions with the financial institutions arranging the transaction.
For customers paying for groceries, transferring money or receiving business payments, OPay’s assurance is that these services continue as usual.
The postponement changes the timetable for bringing public investors into the company and raising additional capital.
Its financial results provide context for that assurance. Before the proposed listing, OPay had already recorded stronger earnings, positive operating cash flow and substantial cash and short-term investments. Those figures show an established business whose progress preceded its plans to raise money in New York
OPay had priced 16 million American depositary shares representing ownership in the company at $19 each. The proposed sale targeted $304 million in gross proceeds and implied a company valuation of approximately $4 billion.
Trading was scheduled to begin on the New York Stock Exchange on October 30, with completion of the offering expected on November 2.
However, a regulatory inquiry in an unnamed foreign jurisdiction interrupted the process. After reviewing the development with its underwriters, OPay decided that postponing the offering was the most prudent course.
Both parties mutually terminated the underwriting agreement signed on October 29.
Although executives participated in the NYSE opening-bell ceremony, the shares did not begin trading as scheduled.
The offering would therefore not be completed under that agreement, and the planned $304 million should not be treated as money already received.
The company’s explanation places the decision on the regulatory inquiry. Underwriters help companies structure, price and sell shares to investors.
