PayPay, the SoftBank-backed Japanese payments app, has delayed the launch of its planned Nasdaq IPO roadshow that was due to begin on Monday, according to two people familiar with the matter. The postponement was taken in the wake of this weekend's strikes on Iran by the U.S. and Israel that killed Iran's Supreme Leader Ayatollah Ali Khamenei and unsettled global markets.
Company executives had been preparing to file an updated prospectus before markets opened on Monday that would set a price range for the offering and begin meetings with large institutional investors, one of the people said. After consulting advisers on a call, PayPay's management elected to pause the roadshow while assessing the market fallout, the sources added. The individuals requested anonymity because the deliberations are private.
Market conditions changed quickly after the strikes. Energy prices rose and major equity indexes fell as investors sought safety, and the VIX volatility index climbed to a three-month high. Fund managers commonly hesitate to allocate fresh capital to new listings amid geopolitical turmoil, particularly for growth-oriented companies whose valuations can be sensitive to abrupt shifts in investor sentiment.
Reuters reported last week that Qatar Investment Authority, Visa and Abu Dhabi Investment Authority were set to anchor the offering with combined commitments of more than $200 million. Two of those institutional investors - Qatar Investment Authority and Abu Dhabi Investment Authority - are based in countries recently affected by Iranian missile strikes.
The delay is a further setback for PayPay's listing timetable. The company previously postponed its IPO last year during the U.S. government shutdown, which disrupted regulatory processes and delayed filings at the U.S. Securities and Exchange Commission.
Those close to the situation cautioned that any new timetable for launching the roadshow will depend on market conditions and remains subject to change. PayPay and SoftBank did not immediately respond to requests for comment.
Contextual note on investor behavior - Large institutional investors frequently reassess commitments to primary offerings when geopolitical events increase market uncertainty. The postponement reflects a cautious approach by PayPay's management and advisers while they gauge whether demand from prospective cornerstone investors will hold under heightened risk aversion.
This pause leaves the definitive timing and pricing of the IPO unresolved until market stability improves or PayPay elects to proceed.