South Africa’s Standard Bank Group is in talks to acquire a stake in Nigerian fintech company OPay Digital Services ahead of its planned initial public offering in the United States, according to a report by Bloomberg.
The proposed investment would see Africa’s largest lender by assets take a stake in OPay before the fintech proceeds with its planned US listing, people familiar with the matter told Bloomberg.
In May, it was reported that OPay was planning a US initial public offering targeting a valuation of approximately $4 billion, with Citigroup, Deutsche Bank, and JPMorgan Chase appointed to manage the offering. The share sale is expected to take place later this year.
According to Bloomberg, OPay declined to comment on the reported deal, while Standard Bank said it does not comment on market speculation, adding that it remains committed to delivering value to its clients across its markets.
The report indicated that the companies have not reached an agreement and there is no guarantee that the proposed transaction will be concluded, the people familiar with the matter said. The amount Standard Bank intends to invest and the percentage stake it is seeking are also not yet known.
OPay is one of Africa’s unicorns and has grown into one of Nigeria’s largest digital financial platforms, offering payments, savings, credit, and other financial services through its mobile-first application.
The company is backed by major global investors including SoftBank and Sequoia Capital, and has expanded beyond Nigeria into markets including Egypt, Pakistan, and Indonesia.
Its planned US IPO, first reported by Bloomberg in May, is expected to value the company at about $4 billion, with Citigroup, Deutsche Bank, and JPMorgan working on the proposed offering.