SoftBank's digital payments provider, PayPay, is preparing for a U.S. initial public offering targeting a valuation of up to $14 billion. The listing aims to be one of the largest for a Japanese company on a U.S. stock exchange.
Global investors, including Qatar Holdings, Visa, and Abu Dhabi Investment Authority, are reportedly set to invest over $200 million as cornerstone investors. The Nasdaq listing, anticipated for next month, is intended to boost the IPO's appeal. Discussions are ongoing regarding the final terms and valuation.
The IPO comes as SoftBank Group intensifies its focus on artificial intelligence, committing significant funds to AI initiatives. CEO Masayoshi Son has divested assets, including stakes in Nvidia and T-Mobile U.S., to support these investments. The PayPay listing could provide a crucial cash infusion for the conglomerate.
PayPay, a joint venture between SoftBank and Yahoo Japan formed in 2018, has become a leading payment platform in Japan, with approximately 72 million registered users. The company has also recently partnered with Visa to explore U.S. market expansion.