Market volatility stemming from Middle Eastern conflicts is expected to push SoftBank’s mobile payment subsidiary PayPay toward a more conservative pricing strategy for its upcoming stock market debut, according to insider sources.
Two individuals with knowledge of the situation indicated that the Japanese digital payment company will likely set its initial public offering price closer to the bottom of its previously announced range due to current market conditions.
Despite the challenging market environment, investor appetite for the offering remains robust, with one source revealing that demand has exceeded the available shares by more than five times. The order collection period has concluded, and final pricing decisions will be made following the close of U.S. trading markets on Wednesday.
According to regulatory documents filed earlier this month, PayPay had planned to sell 55 million American depositary shares at a price point ranging from $17 to $20 per share, which could have resulted in a company valuation reaching as high as $13.4 billion.
The sources requested anonymity since the pricing information has not been made available to the public. PayPay representatives were not immediately available to provide comment on the matter.
