SoftBank reportedly chooses financial institutions for the U.S. initial public offering (IPO) of the payments app, PayPay, according to unnamed sources.

SoftBank reportedly chooses financial institutions for the U.S. initial public offering (IPO) of the payments app, PayPay, according to unnamed sources.

SoftBank's PayPay Files for U.S. IPO, Aiming for $10-$12 Billion Valuation

SoftBank's Japanese payments app operator, PayPay, has confidentially filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC), with plans to list American depositary shares (ADRs) on a U.S. exchange such as NYSE or Nasdaq by the fourth quarter of 2025 [1][2][3][4][5].

The offering is expected to raise over $2 billion, with PayPay aiming for a valuation in the range of $10 billion to $12 billion [1][2][3][5]. This capital raise would support PayPay’s plans to restructure its capital and accelerate expansion of its AI-driven financial ecosystem, including cross-border payments and leveraging its significant Japanese market share (around 66% with 70 million users) [1][3].

Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley have been engaged to manage the IPO [2][5]. Post-listing, PayPay will remain a SoftBank subsidiary, and the IPO is not expected to have a material effect on SoftBank’s financial results [3][4].

If successful, the PayPay IPO would be a significant milestone for SoftBank, potentially marking the largest U.S.-based offering by a Japanese fintech company and elevating PayPay’s profile in the global financial market [3][5]. This rebound in U.S. IPO activity marks a reversal from earlier this year when uncertainty over President Donald Trump’s tariff policies stalled new listings.

PayPay, which has played a role in encouraging Japanese consumers to move away from cash usage, offers financial services including banking and credit cards. The company was reported two years ago that SoftBank was considering a U.S. listing for PayPay [1]. If the PayPay IPO happens, it will be the first U.S. listing of a SoftBank majority investment since the blockbuster IPO of Arm Holdings in 2023 [1]. Arm Holdings, another SoftBank investment, was taken public at a valuation of $54.5 billion and has since seen its market capitalization increase to over $145 billion [1].

It is important to note that the amount the IPO could raise and the timing are subject to market conditions, and all parties involved have declined to comment on the matter [1][2][3][4][5].

Key Points:

• PayPay has filed confidentially with the SEC for an IPO in 2025, aiming to list ADRs on a U.S. exchange such as NYSE or Nasdaq.
• The IPO is targeted for the fourth quarter of 2025, although the exact schedule, size, and pricing are still to be finalized.
• The offering is expected to raise over $2 billion, with PayPay aiming for a valuation in the range of $10 billion to $12 billion.
• Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley are leading preparations for the potential listing.
• If the PayPay IPO happens, it will be the first U.S. listing of a SoftBank majority investment since the blockbuster IPO of Arm Holdings.
• PayPay's ownership is split between several SoftBank entities: wireless carrier SoftBank Corp, the Vision Fund investment arm, and internet business LY Corp, which is a joint venture between SoftBank and Naver Corp.
• PayPay, a Japanese payments app operator, also offers financial services including banking and credit cards.
• This rebound in U.S. IPO activity marks a reversal from earlier this year when uncertainty over President Donald Trump’s tariff policies stalled new listings.
• The amount the IPO could raise and the timing are subject to market conditions.
• SoftBank, Goldman Sachs, JPMorgan, Mizuho, and Morgan Stanley have declined to comment on the matter.

Technology will likely play a significant role in PayPay's AI-driven financial ecosystem expansion, as the company prepares for its initial public offering (IPO) in 2025. Finance will be instrumental in supporting PayPay's capital restructuring plans, with the IPO aiming to raise over $2 billion and aspiring for a valuation between $10 billion and $12 billion.

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