Prime Highlights
- SoftBank to list fintech division PayPay in U.S. IPO, which will raise more than $2 billion.
- The listing is probable as soon as Q4 2025 with most of the largest investment banks leading the way.
Key Facts
- PayPay is a Japanese mobile payment service providing rebates, banking, and credit card services in aid of cashless payments.
- Joint ownership is held by SoftBank Corp., the SoftBank Vision Fund, and LY Corp., a joint company with Naver.
Key Background
SoftBank Group is racing to list PayPay, its quickly growing Japanese fintech division, in the US. The group plans to raise over $2 billion through an initial public offering, possibly listing as early as the fourth quarter of 2025.
To structure this IPO listing of stars, SoftBank approached top universal banks such as Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley to serve as underwriters. During ongoing planning for the IPO, ultimate timing and valuation will depend on current trends in the market at the time of its launch.
This would be SoftBank’s initial majority-held U.S. IPO following the Arm Holdings triumph in 2023. Arm’s float was the largest float in the tech industry in recent years, and its record market cap has tuned in just right for PayPay to expect a warm reception in U.S. markets.
Ever since its launch in Japan, PayPay has been leading the digital payment to cash revolution. Through its strong rebates and services integration such as banks and credit cards, it is now threatening Japanese digital economy players big time. Its expanding services menu and user base have led to it being a strategic investment in SoftBank’s holding.
The company’s shareholding is reflective of its strategic significance: SoftBank Corp. and the SoftBank Vision Fund have important stakes, along with LY Corp., the corporate joint venture with South Korea’s Naver. The IPO will not just raise capital but also free up liquidity for its stakeholders.
With the U.S. IPO market picking up pace, fueled by robust tech earnings and positive sentiment from foreign investors, the SoftBank entry into the U.S. is proof of faith in PayPay’s long-term growth story and international appeal.
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