SoftBank-backed PayPay targets up to US$13.4 billion valuation in US IPO

[BENGALURU] SoftBank’s PayPay is targeting a valuation of up to US$13.4 billion in its US initial public offering (IPO), pressing ahead despite volatile markets in what could be among the largest US listings by a Japanese firm.

The US IPO market has started the year on shaky footing, with market swings prompting some companies to delay flotation plans. Analysts said a strong PayPay debut could help lift investor confidence despite the turbulence.

The Japanese payments app and its backer plan to sell nearly 55 million American depositary shares priced between US$17 and US$20 apiece to raise roughly US$1.1 billion at the top end, it disclosed in a regulatory filing on Monday (Mar 2).

“Appetite is particularly strong for speciality 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,” IPOX CEO Josef Schuster said.

PayPay’s IPO roadshow was initially expected to launch before markets opened on Monday but was postponed after global markets were jolted by a widening conflict in the Middle East, Reuters reported, citing sources familiar with the matter.

IPO activity is typically strongest during periods of market stability and risk-on sentiment, which help issuers secure firm demand and avoid pricing discounts.

“Most pre-IPO companies are waiting for the ideal market, but that has left them waiting a long time,” said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.

“PayPay’s business is heavily integrated into Japan’s payments ecosystem, and I don’t see that being disrupted by AI in the near term. Of course, the risk is there, and recently investors have been willing to push on valuation.”

Marquee listing

PayPay was founded in 2018 as a joint venture between SoftBank and Yahoo Japan. It entered the market by waiving transaction fees for up to three years for small and medium-sized merchants to tap demand for digital payments.

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The company has played a role in Japan’s push towards cashless payments, using rebates and other incentives to encourage consumers to use its mobile app.

PayPay had about 72 million registered users at the end of 2025, making it one of the most popular digital wallets in the country.

The offering comes as SoftBank Group ramps up investment in artificial intelligence, including its backing of OpenAI.

Cornerstone investors, including a subsidiary of Qatar Investment Authority, an arm of Visa, and Abu Dhabi Investment Authority, have expressed interest in purchasing up to US$220 million of shares in the offering.

PayPay plans to list on the Nasdaq under the symbol “PAYP”.

Goldman Sachs, JP Morgan, Mizuho and Morgan Stanley are joint book-running managers for the offering. REUTERS