PayPay Surges 19% in Nasdaq Debut, Pre-Market Rally Hits 25%
PayPay opened at $19 on Nasdaq, 19% above its $16 IPO price, and raised $880 million in its $879.8 million U.S. offering, valuing the company at roughly $12.1 billion. Shares jumped an additional 25% in premarket trading as institutions including ARK Invest, ADIA and Visa acquired stake.
1. IPO Performance and Valuation
PayPay priced its U.S. IPO at $16 per share and opened at $19 on Nasdaq, representing a 19% premium, before rallying another 25% in premarket trading. The offering raised $880 million and implied a market capitalization of approximately $12.1 billion.
2. Investor Demand and Allocation
The deal comprised 31.1 million ADRs sold by the company and 23.9 million by a SoftBank affiliate, with major allocations to ARK Invest, ADIA, Qatar Investment Authority and Visa totaling around $220 million. Mizuho Financial Group also offered 8.7 million ADRs at the IPO price, while SoftBank retains about 92% of voting power post-listing.
3. Financial Metrics and Growth Outlook
Since its 2018 launch, PayPay has amassed 72 million users and processed roughly $100 billion in gross merchandise volume, reporting a 31.28% profit margin. Nine-month results showed profit of ¥103.3 billion on ¥278.5 billion revenue, up from ¥28.96 billion profit on ¥220.4 billion a year earlier, and the company plans U.S. expansion via a partnership with Visa.