The House of Representatives has waded into the sudden suspension of the planned listing of Nigerian fintech company OPay on the New York Stock Exchange (NYSE), following regulatory concerns reportedly arising from a petition submitted to the China Securities Regulatory Commission.
The House is seeking to unravel the circumstances surrounding the halted $304 million initial public offering (IPO) and its implications for millions of Nigerian users and investors.
The resolution was passed during Wednesday’s plenary following the adoption of a motion on a matter of urgent public importance sponsored by Hon. Amos Daniel, after reports that OPay had pulled the plug on its highly anticipated US listing hours before its inaugural trading session.
OPay, one of Nigeria’s biggest digital payment platforms, with over 50 million monthly active users, had priced 16 million American Depositary Shares at $19 each, valuing the company at about $4 billion, under the ticker symbol OPAY.
However, in a sudden turn of events, the company announced that it was halting the offering, citing a regulatory inquiry in an undisclosed foreign jurisdiction, which it described as immaterial to its core operations.
During the debate on the motion, Hon. Daniel, who expressed concern over the development after months of preparation and fanfare, raised serious questions about regulatory compliance, corporate governance, investor confidence and the protection of Nigerian customers’ funds and data.
“The House notes that Open Digital Services Limited is a major player in Nigeria’s financial technology ecosystem, contributing significantly to financial inclusion, digital payments, employment generation and the growth of the Nigerian digital economy.
“The House further notes that OPay is the first Nigerian fintech company to achieve a listing on the prestigious New York Stock Exchange, a historic milestone for Nigeria and a significant achievement for the country’s technology and financial services sector, made possible by the groundbreaking reforms embarked upon by this administration.
“The House further notes with great concern complications arising from claims regarding its alleged Chinese corporate status, as reported in the media,” the Kaduna lawmaker noted.
The House noted that OPay had also planned a secondary listing on the Nigerian Exchange, subject to regulatory approval, and that the aborted US listing could affect investor confidence in Nigeria’s fast-growing fintech sector.
Hon. Daniel argued that the National Assembly could not fold its arms while a company that holds the funds and personal data of millions of Nigerians faces an undisclosed regulatory probe abroad without clarity from Nigerian regulators.
Consequently, the House mandated its leadership to engage with the appropriate authorities and relevant stakeholders with a view to resolving the issues hindering this historic outing by a Nigerian-funded company and ensuring that the opportunities made possible for Nigerian corporate citizens by the ongoing economic reforms are not wasted.
The House leadership was also mandated to take all necessary diplomatic and institutional steps to protect the legitimate interests of Nigerian and Nigerian-incorporated companies operating in unsuitable conditions, taking into cognisance the country’s quest for investment opportunities in international capital markets to further expand economic opportunities at home.
The leadership of the House is expected to report back within two weeks for further legislative action.
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