PayPay, the payment application operator owned by Softbank Group Corp, plans an initial public offering in the United States, targeting a valuation of up to $13.4 billion. This move is expected to provide the Japanese technology investment conglomerate with additional capital to support its significant investments in the artificial intelligence sector.
In a regulatory filing on Monday, PayPay stated it expects to issue approximately 55 million American Depositary Shares (ADS), with a price range of $17.00 to $20.00 per share.
Assuming underwriters do not exercise their option to purchase additional shares, entities controlled by Softbank Group Corp will retain approximately 91.8% of the voting power following the offering.
Launched in 2018, PayPay had reached 72 million registered users by the end of 2025, representing about 75% of Japan's smartphone user base.
The IPO comes as Softbank Group Corp is making substantial investments in AI-related companies like OpenAI, while simultaneously raising funds for these ventures through asset sales, share pledges, and loans.
The Tokyo-based firm, led by billionaire Masayoshi Son, announced on Monday it will invest an additional $30 billion in OpenAI this year, bringing its total investment in the ChatGPT developer to $64.6 billion. Following this investment, Softbank Group Corp is expected to hold a 13% stake in OpenAI.
In October of last year, Softbank Group Corp sold its entire stake in Nvidia for $5.8 billion to fund its investment in OpenAI. The company has also borrowed billions of dollars using shares of its chip design unit, Arm, and its mobile communications subsidiary, Softbank Corp, as collateral.
In this IPO, PayPay will offer 31.1 million ADS, while an investment fund under Softbank Group Corp will sell 23.9 million ADS.
PayPay indicated that subsidiaries of the Qatar sovereign wealth fund, a Visa subsidiary, and the Abu Dhabi Investment Authority have expressed interest in purchasing up to $220 million worth of shares in total.
After the offering, the company will have approximately 668.6 million ordinary shares outstanding, with each ADS representing one ordinary share.
For the nine months ended December 2025, PayPay's revenue grew 26% to 278 billion yen, while its operating profit doubled to 61 billion yen (approximately $387.2 million).
PayPay has applied to list on the Nasdaq Global Select Market under the ticker symbol "PAYP".
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