SoftBank Selects Goldman Sachs, Others for Potential PayPay US IPO

SoftBank has selected investment banks for a potential US IPO of PayPay, its mobile payments app. The move comes as SoftBank looks to expand PayPay globally. Goldman Sachs, Morgan Stanley, and Citigroup are reportedly among the banks chosen for the IPO.

SoftBank Group Corp has reportedly selected investment banks to facilitate a potential initial public offering (IPO) of its Japanese mobile payments app, PayPay, in the United States. The move is part of SoftBank's strategy to expand PayPay globally and follows a long-standing plan to list the business in the U.S. market. Goldman Sachs, Morgan Stanley, and Citigroup are among the banks chosen for the IPO preparations [1].

According to sources familiar with the matter, the PayPay IPO could raise over $2 billion from investors, with the listing potentially occurring in the final quarter of this year. The sources cautioned that the timing and the amount raised are subject to market conditions. SoftBank, along with the selected investment banks, declined to comment on the matter [2][3].

PayPay has played a significant role in encouraging Japanese consumers to shift away from cash transactions by offering rebates on payments made through its mobile app. Additionally, the app provides financial services such as banking and credit cards. Reuters reported two years ago that SoftBank was considering a U.S. listing for PayPay, with the conglomerate expressing its intent to IPO the business earlier this year [2][3].

If the IPO proceeds, it will mark the first U.S. listing of a SoftBank majority investment since the highly successful IPO of Arm Holdings in 2023. Arm Holdings' IPO valuation was $54.5 billion, which has since increased to over $145 billion in market capitalization [2][3].

The renewed momentum in U.S. IPO activity is driven by strong tech earnings and signs of progress in trade negotiations, which have helped restore investor confidence. This rebound comes after a period of uncertainty earlier this year, when President Donald Trump's tariff policies stalled new listings [2][3].

PayPay's ownership is split among several SoftBank entities, including wireless carrier SoftBank Corp, the Vision Fund investment arm, and internet business LY Corp, a joint venture between SoftBank and Naver Corp [2][3].

References:
[1] https://www.businesstimes.com.sg/companies-markets/banking-finance/softbank-selects-banks-us-ipo-payments-app-paypay-sources-say
[2] https://uk.finance.yahoo.com/news/exclusive-softbank-selects-banks-us-230448990.html
[3] https://economictimes.indiatimes.com/markets/ipos/fpos/softbank-selects-banks-for-us-ipo-of-payments-app-paypay-sources-say/articleshow/123226716.cms