Exclusive-SoftBank's PayPay prices IPO below range at $16 a share, sources say

SoftBank’s PayPay IPO Prices Below Target Range at $16, Raises $880 Million

By Echo Wang

PayPay’s IPO Details and Market Context

IPO Pricing and Valuation

March 11 (Reuters) - SoftBank Group-backed PayPay priced its U.S. initial public offering at $16 per share on Wednesday, below its targeted price range, people familiar with the matter said, as the U.S.-Israeli war on Iran weighed on markets.

The IPO raised $880 million based on 55 million American depositary receipts sold, valuing the Japanese digital wallet provider at $10.7 billion, the people said, asking not to be identified because the pricing isn't yet public.

Target Range and Response

Reuters reported on Tuesday that PayPay was likely to price the IPO around the low end of the range. It originally wanted to sell the shares at a target range of between $17 and $20 apiece.

PayPay did not immediately respond to a request for comment.

Market Conditions and IPO Timing

PayPay's IPO is coming as the U.S.-Israeli war on Iran rattles global markets. The company briefly delayed the launch of the roadshow earlier this week before resuming it a day later as it reassessed market conditions, Reuters previously reported.

U.S. IPO Market Outlook

Despite the recent volatility, the U.S. IPO market is expected to rebound sharply this year. Goldman Sachs has forecast proceeds could quadruple to a record $160 billion in 2026, driven by a pipeline of large private companies, including SpaceX, OpenAI and Anthropic preparing potential debuts.

SoftBank’s Investment and PayPay’s Growth

SoftBank’s IPO Track Record

PayPay would mark the first U.S. listing of a SoftBank majority investment since the blockbuster IPO of Arm Holdings in 2023. SoftBank took the chip designer public at a valuation of $54.5 billion. Its market capitalization has since risen to more than $127 billion.

PayPay’s Business Model and Expansion

Founded in 2018 as a joint venture between SoftBank and Yahoo Japan, PayPay entered the market by waiving transaction fees for small and medium-sized merchants for up to three years to spur adoption. The company has since become one of Japan’s most widely used digital wallets, with about 72 million registered users at the end of 2025.

Key Investors and Strategic Partnerships

Visa, the Abu Dhabi Investment Authority and a subsidiary of the Qatar Investment Authority are anchoring the IPO by ​purchasing up to $220 million of PayPay's shares upon its debut.

Role in Japan’s Cashless Push

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

Nasdaq Listing and Underwriters

PayPay plans to list on the Nasdaq under the symbol "PAYP."

Goldman Sachs, J.P. Morgan, Mizuho and Morgan Stanley ​are joint book-running managers for the offering.

(Reporting by Echo Wang in New York; Editing by Dawn Kopecki and Lisa Shumaker)