PayPay Files for Nasdaq IPO Targeting $20 Per ADS

Tokyo, Japan - PayPay Corp., a Japanese digital payments company majority-owned by SoftBank Group, filed for an initial public offering on the Nasdaq Global Select Market.

The company seeks to raise approximately $555 million, with shares priced between $17 and $20 each.

The company plans to list under the ticker symbol "PAYP" and offer 31 million American depositary shares. 

An additional 24 million shares are expected to be sold by the SoftBank-affiliated entity SVF II Piranha.

Cornerstone investors have expressed nonbinding interest in purchasing up to $220 million of the offering.

At the $18.50 midpoint, PayPay expects net proceeds of approximately $555 million, with intended use for working capital, marketing, and potential acquisitions.

Following the public listing, SoftBank Group will retain control of the company.

Entities affiliated with SoftBank are expected to hold 91.78% of aggregate voting power after the offering, with ownership divided among B Holdings Corporation, SVF II Piranha, SoftBank Corp., and LY Corporation.

Under Nasdaq rules, PayPay will qualify as a "controlled company," exempting it from certain independent governance requirements.

PayPay reported total revenue of ¥299.1 billion for the fiscal year ended March 31, 2025, reflecting a two-year compound annual growth rate of 22%.

The platform reported a profit of ¥39.2 billion for that period, representing a 13% margin.

Adjusted earnings before interest, taxes, depreciation, and amortization were ¥58.7 billion.

For the nine months ended December 31, 2025, the company reported a profit of ¥103.3 billion.

As of late December, the company's core payment service had approximately 72 million registered users, representing a 75% penetration rate among smartphone users in Japan.

The payment segment processed ¥15.39 trillion in gross merchandise value in the year ended March 2025.

PayPay expanded from mobile payments into broader financial services through acquisitions.

The company acquired PayPay Card Corporation in October 2022 and consolidated PayPay Bank and PayPay Securities into its structure in April 2025.

As of December, PayPay Bank held ¥2,281.9 billion in deposits and ¥1,098.3 billion in loans across 9.7 million accounts. PayPay Securities maintained 1.54 million brokerage accounts.