OPay has decided to scrap its planned $304 million initial public offering (IPO) in the United States due to a regulatory inquiry in China, as reported by Bloomberg. This inquiry emerged shortly after the Nigerian-focused fintech had priced its shares on October 30.
The investigation is reportedly linked to OPay’s founder, Zhou Yahui, who is a well-known businessman from China. While the company initially kept details under wraps and described the jurisdiction involved as irrelevant to its main business, it’s now clear that the scrutiny is connected to Zhou.
Interestingly, the company does not have any business operations or revenue in China; its only connection to the country stems from Zhou, who is also associated with the Chinese technology firm Kunlun Tech.
OPay’s plan was to raise around $304 million by offering 16 million American depositary shares (ADSs) at a price of $19 each, which would have valued the company at about $4 billion, at the lower end of its intended range of $19 to $21.
However, on October 30, documents filed with the U.S. Securities and Exchange Commission (SEC) confirmed OPay’s decision to halt the offering. Following this, the company and its underwriters terminated their underwriting agreement, meaning that OPay’s shares will not start trading on the New York Stock Exchange as initially scheduled.
How Zhou’s Chinese ties could affect OPay
Zhou’s ties to China could raise regulatory questions for OPay that extend beyond its regular activities in Nigeria. As the founder, Zhou’s ownership and business interests might be of interest to regulators looking into the company’s structure or overseas fundraising efforts.
However, Bloomberg has not specified what concerns the Chinese regulator has raised, so it’s unclear whether the inquiry is directed at Zhou personally, his business dealings, or OPay’s plans for a stock market listing.
Not every company led by a Chinese national is automatically subject to Chinese regulations. The rules governing overseas listings and cybersecurity primarily apply to companies operating within China, particularly those that collect data from more than a million users and seek to list abroad.
According to Chinese cybersecurity authorities, the filing requirements focus on China-registered entities, not just the nationality of the founder. OPay is based in Singapore and claims it has no operations or revenue in China, leaving the exact reasons for the inquiry unclear.
The fintech has stated that the recent inquiry does not indicate any issues with its business performance, finances, or regulatory status. The company emphasises that this will not impact its operations or customer services in Nigeria and other markets.
As of July 31, 2026, OPay reported about 50 million monthly active users across Nigeria, Egypt, Pakistan, and Indonesia. This disclosure comes after the company decided to withdraw its IPO, shifting focus away from its founder’s regulatory issues.
See also: ‘Stubbornness is a business model in Africa’: OPay’s Dotun Adekunle on the road to its $4.4bn IPO
