PayPay has formally filed paperwork for a U.S. initial public offering, marking a significant step toward its long-planned entry into public markets. Backed by SoftBank, the payments app resumed its IPO process after regulatory reviews were delayed by the longest-ever U.S. government shutdown, which pushed back an expected December 2025 listing. The filing positions PayPay to become the first SoftBank-majority investment to list in the U.S. since Arm Holdings' high-profile IPO in 2023. IPO preparations have been underway for several years, with SoftBank identifying PayPay’s flotation as a strategic objective as early as 2021, confirming active preparations earlier this year, and then filing a confidential New York filing.
Financial disclosures in the filing show a sharp improvement in performance, with PayPay reporting a profit of approximately $675 million on revenue of about $1.82 billion, compared with a profit of roughly $190 million on revenue of around $1.44. Market expectations indicate the offering could raise more than $2 billion, with the company’s valuation potentially exceeding $19.5 billion, although PayPay has not disclosed the proposed size or price range of the IPO. Both PayPay and its parent, SoftBank, plan to sell shares as part of the transaction. The listing aligns with SoftBank’s broader strategy to monetize assets to support increased investment in artificial intelligence. Goldman Sachs, J.P. Morgan, Mizuho, and Morgan Stanley are acting as lead underwriters for the offering.
