In spite of erratic markets, SoftBank’s PayPay is aiming for a valuation of up to $13.4 billion in its U.S. IPO, which may be one of the biggest U.S. listings by a Japanese company.
Due to market fluctuations, some companies have postponed their float plan, which has put the U.S. IPO market on a precarious start to the year. Despite the volatility, analysts predicted that a successful PayPay launch may boost market confidence.
The Japanese payments app revealed in a regulatory filing on Monday that it and its backer intend to raise approximately $1.1 billion at the top end by selling nearly 55 million American depositary shares at a price between $17 and $20 each.
According to Josef Schuster, CEO of IPOX, “there is a particularly strong demand for specialty firms operating in the respective domestic markets across healthcare and select fintech, which are relatively insulated from geopolitical events in the Middle East and the potential adverse impact of AI.”
PayPay’s IPO roadshow was originally scheduled to begin before markets opened on Monday. However, it was postponed as a worsening war in the Middle East startled world markets.
To help issuers secure firm demand and avoid pricing concessions, IPO activity usually peaks during times of market stability and risk-on mentality.
According to Matt Kennedy, senior strategist at Renaissance Capital, which offers ETFs and IPO-focused research, “the majority of pre-IPO companies are waiting for the ideal market, but that has left them waiting a long time.
“I don’t anticipate AI disrupting PayPay’s business in the foreseeable future because it is deeply ingrained in Japan’s payments environment. Investors have recently been eager to push on value, although the risk is undoubtedly present.”
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In 2018, SoftBank and Yahoo Japan launched PayPay as a joint venture. To meet the demand for digital payments, it joined the market by waiving transaction fees for small and medium-sized businesses for a maximum of three years.
By encouraging customers to use its mobile app with rebates and other incentives, the corporation has contributed to Japan’s drive towards cashless transactions.
By the end of 2025, PayPay had around 72 million registered users, making it one of the most widely used digital wallets in the nation.
The offering coincides with SoftBank Group’s increased investment in AI, including its support of OpenAI.
Cornerstone investors have indicated interest in buying up to $220 million worth of shares in the sale, including a subsidiary of the Qatar Investment Authority, an arm of Visa, and the Abu Dhabi Investment Authority.
PayPay intends to go public on the Nasdaq with the symbol “PAYP.”
The offering’s book-running managers are Goldman Sachs, J.P. Morgan, Mizuho, and Morgan Stanley.
