The offering could raise over $2 billion and take place as soon as the final quarter of this year.
SoftBank has reportedly selected banks for an initial public offering in the United States for its Japanese payments application operator PayPay.
According to Reuters News, Goldman Sachs, JPMorgan Chase & Co., Mizuho Financial Group, and Morgan Stanley are laying the groundwork for a listing that could take place as soon as the final quarter of this year. PayPay is the largest mobile payment app in Japan.
The offering could raise over $2 billion, the report said, citing sources familiar with the matter. However, the timing and the amount the IPO could raise are subject to market conditions.
Retail sentiment on Stocktwits about SoftBank was in the ‘extremely bullish’ territory at the time of writing.
PayPay, which was launched in 2018, surpassed 70 million registered users last month. The firm also offers a range of financial services, including banking and credit card options. SoftBank had earlier signaled this year that it was exploring an IPO for the payment services firm.
According to the report, PayPay’s ownership is divided among several SoftBank entities, including wireless carrier SoftBank Corp, the Vision Fund investment arm, and internet business LY Corp, a joint venture between SoftBank and Naver Corp.
A public listing of PayPay will mark the debut of the first SoftBank majority-owned company since the 2023 IPO of the chipmaker arm. While Arm went public at a valuation of $54.5 billion, it currently has a market capitalization of nearly $147 billion.
Following a slump at the beginning of the year, the U.S. IPO market is rebounding as the U.S. has struck several trade deals with key partners and eased tensions about the global economy. The likes of CoreWeave and stablecoin issuer Circle have made blockbuster debuts this year.
Earlier this month, the Minato City, Tokyo-based SoftBank reported a net income of 421.82 billion yen ($2.9 billion) for the fiscal first quarter, which was more than double that of the consensus estimates, aided by the company’s investment in Nasdaq-listed Nvidia.
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