SoftBank's PayPay is likely to price its initial public offering close to the lower boundary of the range set out in its marketing materials, according to two people with direct knowledge of the matter. The decision reflects market pressure tied to heightened tensions in the Middle-East, the sources said.
PayPay had planned to sell 55 million American depositary shares (ADS), with a marketed price band of $17 to $20 per ADS. The filing that set the range indicated the company was targeting a valuation up to $13.4 billion at the top of that range.
Despite the expected downward tilt in final pricing, the book was reported to be well-covered. One of the sources said the book was subscribed at a rate exceeding five times the offered amount. The book has now closed, and the sources said the IPO price would be finalized after U.S. market hours on Wednesday.
The individuals who provided these details declined to be identified because the information had not been publicly released. PayPay was not immediately reachable for comment, the sources added.
This planned offering and the reported pricing posture sit against a backdrop of market unease tied to geopolitical developments in the Middle-East. According to the information provided, that volatility has influenced investor appetite enough that PayPay appears set to land nearer the low end of its marketed range rather than the midpoint or top.
Contextual note - The facts above are drawn from the reporting provided: PayPay's ADS count, the $17 to $20 marketing range, the up-to-$13.4 billion valuation target, the book coverage metric of over five times, the book closure, and the timing for final pricing after U.S. market hours on Wednesday. Sources were unnamed and PayPay could not be reached for immediate comment.