SoftBank's PayPay goes public at $10.7B, far short of Son's $20B target

What's the deal? SoftBank's digital payments arm PayPay has gone public in the US, listing on the Nasdaq under the ticker "PAYP." The Japanese digital wallet — used by around 72 million people — raised $880 million at a valuation of $10.7 billion, well short of SoftBank founder Masayoshi SonDealroom has a profile for this one. Try Dealroom →'s earlier ambition of up to $20 billion.

The IPO wasn't the triumphant launch SoftBank had hoped for. Back in Tokyo, SoftBank's own shares dropped 4% on the news. One bright spot: the Qatar Investment Authority and Abu Dhabi Investment AuthorityDealroom has a profile for this one. Try Dealroom → were among investors that together pledged more than $200 million toward the deal.

Why now? PayPay is one of Japan's most widely used payment apps, founded in 2018 as a joint venture between SoftBank and Yahoo JapanDealroom has a profile for this one. Try Dealroom →. With 72 million registered users and a dominant position in Japan's cashless payments market, the company had plenty to sell to investors — and SoftBank was eager to prove it could still take companies public after a years-long drought in big listings.

This is SoftBank's first major US float since it took chip designer Arm Holdings public in 2023 — a deal that was a runaway success, with Arm's market value more than doubling after its debut.

What could go wrong? PayPay's below-target valuation suggests investors weren't fully convinced by the company's growth story — or simply got spooked by global market turbulence linked to geopolitical tensions at the time of the listing. A weak first impression can make the months ahead harder, as early investors who bought in will be watching closely for any signs of further decline.

The signal: Despite the bumpy start, the mood around US stock market listings is broadly optimistic. Goldman SachsDealroom has a profile for this one. Try Dealroom → has forecast that the total amount raised through US IPOs could hit a record $160 billion in 2026, with major names like SpaceX and OpenAI potentially joining the queue. PayPay's listing — imperfect as it was — is part of that wave. SoftBank still owns more than 90% of PayPay and stands to benefit from any future gains.

But the deal also highlights a broader risk: if petrodollar sovereign funds — whose $200 million-plus commitment helped prop up this IPO — slow the pace of new pledges, deals around the world could feel the squeeze.

Sources:
Reuters
Japan Times
Global Banking & Finance Review
Investing.com
Softbank

J.V.