SoftBank Picks Banks for PayPay's US IPO, Aiming to Raise Over $2B

SoftBank has selected major investment banks to lead PayPay's potential U.S. IPO, which could raise over $2 billion. The payments app operator is a subsidiary of SoftBank, and the IPO is expected to be one of the largest in the U.S. this year. The selected banks will organize the IPO and work with PayPay to prepare for the listing.

SoftBank has chosen Goldman Sachs, JPMorgan Chase & Co, Mizuho Financial Group, and Morgan Stanley to lead the potential initial public offering (IPO) of its payments app operator, PayPay, in the United States. The IPO could raise over $2 billion and may occur as early as the final quarter of 2025, according to sources familiar with the matter [1][2][3].

PayPay has played a significant role in encouraging Japanese consumers to shift from cash to mobile payments by offering rebates and financial services such as banking and credit cards. The app's ownership is split between SoftBank Corp, the Vision Fund, and LY Corp, a joint venture between SoftBank and Naver Corp [1].

This IPO marks one of the largest in the U.S. this year, following the strong momentum in tech earnings and progress in trade negotiations that have restored investor confidence. The offering will be one of the largest since the blockbuster IPO of Arm Holdings in 2023, which raised $5 billion at a $54 billion valuation [3].

SoftBank's recent financial performance has been robust, with the company posting a 421.8 billion yen ($2.9 billion) profit in the April-June quarter, driven by its investments in AI companies like Nvidia and OpenAI [4]. The company's founder, Masayoshi Son, has emphasized the potential in AI, which aligns with the company's investment strategy.

The selected banks will organize the IPO and work with PayPay to prepare for the listing. However, the timing and the amount the IPO could raise are subject to market conditions [1]. SoftBank, Goldman Sachs, JPMorgan, Mizuho, and Morgan Stanley declined to comment on the matter.

References:
[1] https://finance.yahoo.com/news/exclusive-softbank-selects-banks-us-230448990.html
[2] https://seekingalpha.com/news/4482963-softbank-picks-banks-for-paypay-us-ipo---report
[3] https://www.benzinga.com/markets/ipos/25/08/47022735/softbank-plans-biggest-us-ipo-since-arm-went-public-taps-top-wall-street-banks-for-a-potential-2-billion-offering
[4] https://abcnews.go.com/Business/wireStory/japan-tech-giant-softbank-group-sees-fortunes-surging-124438454