SoftBank's PayPay Files for U.S. IPO with SEC

SoftBank Corp.'s payments app unit PayPay has submitted paperwork for an initial public offering in the US. The exact schedule, size, and price of the offering have not been determined. This move comes as the company continues to expand its reach in the payments industry.

SoftBank Corp. has submitted paperwork for the initial public offering (IPO) of its payments app unit, PayPay, in the United States. The exact schedule, size, and price of the offering have yet to be determined, according to a statement from SoftBank Corp. This move is part of the company's ongoing expansion in the payments industry.

PayPay, which has been instrumental in shifting Japanese consumers away from cash through mobile payment rebates and financial services such as banking and credit cards, is set to be listed on the US stock market. The IPO could raise up to $2 billion and may take place in the fourth quarter of 2025 [1]. The company has selected Goldman Sachs (GS), JPMorgan Chase & Co (JPM), Mizuho Financial Group (MFG), and Morgan Stanley (MS) to organize the potential IPO [1].

SoftBank reported a net profit of $2.87 billion in Q1 2025, largely driven by its investments in AI. The company's stake in Nvidia (NVDA) contributed significantly to this profit, with an investment gain of $209.7 billion in the first quarter alone. Additionally, the SoftBank Vision Funds (SVFs) fetched gains of $660.18 billion, primarily due to rises in share prices of Coupang (CPNG) and Auto1 Group [2]. SFTBY stock has gained 63.6% in 2025, driven by its focus on AI and data center projects.

The IPO of PayPay follows the successful US listing of Arm Holdings in 2023, which was valued at $54.5 billion and has since increased to over $145 billion. The US IPO activity has gained momentum in a long-awaited rebound, supported by strong tech earnings and signs of progress in trade negotiations that have helped restore investor confidence [2].

PayPay's ownership is split between a number of 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. Shares in SoftBank Corp and LY Corp rose 2% on Tuesday following the announcement [2].

References:
[1] https://www.ainvest.com/news/softbank-prepares-paypay-ipo-q1-earnings-surprise-2508/
[2] https://theedgemalaysia.com/node/766166