Standard Bank Group, South Africa’s largest lender, is in talks to acquire a stake in Nigeria-focused fintech company OPay Digital Services ahead of the company’s planned initial public offering (IPO) in the United States.
According to a Bloomberg report, discussions between the two companies are at an early stage and may not result in an agreement. The potential investment’s size and structure have not been disclosed.
OPay, which is backed by SoftBank Group, is reportedly working with Citigroup, Deutsche Bank and JPMorgan Chase on plans for a US listing.
The fintech is targeting a valuation of about $4 billion, roughly double the $2 billion valuation it secured during its last major funding round in 2021.
A potential investment by Standard Bank would give the South African financial institution exposure to one of Nigeria’s leading digital payments platforms, as traditional banks increasingly seek opportunities in Africa’s expanding fintech sector.
However, the timing, size and valuation of OPay’s proposed IPO remain subject to market conditions and investor demand.