By Echo Wang 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
Exclusive-SoftBank's PayPay prices IPO below range at $16 a share
PayPay's U.S. IPO Pricing and Market Impact
By Echo Wang
March 11 (Reuters) - SoftBank Group-backed PayPay on Wednesday priced its U.S. initial public offering at $16 per share, below its targeted price range, as the U.S.-Israeli war with Iran weighed on market sentiment.
IPO Details and Valuation
The IPO raised about $880 million based on 55 million American depositary receipts sold, valuing the Japanese digital wallet provider at $10.7 billion.
PayPay confirmed the pricing in a statement on its website after Reuters reported the details earlier on Wednesday.
Pricing Strategy and Market Conditions
PayPay was likely to price the IPO around the low end of the range, Reuters reported on Tuesday. It originally wanted to sell the shares at a target range of $17 to $20 apiece.
The IPO comes as the U.S.-Israeli war with Iran rattles global markets. The company delayed the launch of the roadshow this week before resuming it a day later as it reassessed market conditions, Reuters reported.
U.S. IPO Market Outlook
The U.S. IPO market is set to rebound sharply this year after a bout of volatility. 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 Previous Listings
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 Growth
Company Origins and User Base
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 IPO Anchors
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 debut.
Role in Japan's Cashless Push
PayPay 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.
Listing Details and Underwriters
Nasdaq Debut
The company plans to list on the Nasdaq under the symbol "PAYP."
Book-Running Managers
Goldman Sachs, J.P. Morgan, Mizuho and Morgan Stanley are joint book-running managers for the offering.
Reporting Credits
(Reporting by Echo Wang in New York; additional reporting by Chris Thomas in Mexico City; Editing by Dawn Kopecki, Lisa Shumaker and Christopher Cushing)
