South Africa’s Standard Bank Group is in talks to acquire a stake in Nigerian fintech company OPay Digital Services ahead of the company’s planned initial public offering (IPO) in the United States, according to Bloomberg.
The proposed investment would see Africa’s largest lender by assets take a stake in OPay before the fintech proceeds with its planned US listing, people familiar with the matter told Bloomberg.
What you should know
The potential investment comes as OPay prepares for a possible listing in the United States, which could value the Nigerian fintech at approximately $4 billion.
OPay has expanded its presence in Nigeria’s digital payments market, while Standard Bank has continued to pursue opportunities across Africa’s financial technology and digital services ecosystem.
A pre-IPO investment by Standard Bank could give the lender exposure to OPay’s growth ahead of a potential public listing.
What they are saying
People familiar with the matter told Bloomberg that Standard Bank Group is discussing the acquisition of a stake in OPay, although the discussions are ongoing and could still change.
The proposed transaction would take place ahead of OPay’s planned US IPO.
In May, reports indicated that OPay was targeting a valuation of around $4 billion for the proposed listing.
Citigroup, Deutsche Bank and JPMorgan Chase have reportedly been appointed to manage the offering, which is expected to take place later this year.
The potential deal would position Standard Bank as an investor in one of Africa’s major fintech companies ahead of what could become a significant international capital-market transaction.
