Market Chatter: PayPay Secures Visa, Qatar, Abu Dhabi Sovereign Wealth Funds As Key IPO Investors

MT Newswires Live03-03 08:52

Visa and sovereign wealth funds Qatar Investment Authority and Abu Dhabi Investment Authority plan to take part in Japanese mobile payments firm PayPay's U.S. initial public offering as key investors, Nikkei reported Tuesday, citing people familiar with the matter.

PayPay, which filed IPO documents with the U.S. Securities and Exchange Commission in February, is preparing to outline preliminary terms. The three investors are expected to acquire roughly 10% to 20% of the shares on offer, committing tens of billions of yen, according to the report.

The company is set to list on the Nasdaq with an estimated market capitalization of about 2 trillion yen. At listing, SoftBank Vision Fund plans to sell around 10% of PayPay. Parent SoftBank Group (TYO:9984) and affiliate LY Corp (TYO:4689) together hold 66%, with the Vision Fund owning the remainder, the report said.

Visa, which formed a strategic partnership with PayPay earlier this year, may also invest in a planned U.S. subsidiary. Securing long-term backers such as QIA and ADIA could support demand for the offering and broaden its investor base, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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