Standard Bank to invest up to $200M in OPay ahead of US IPO

Standard Bank Group, through its subsidiary Stanbic Africa Holdings, intends to invest up to $200 million in the Nigerian-focused fintech OPay. This private placement is set to occur alongside OPay’s planned initial public offering (IPO) on the New York Stock Exchange.

According to filings with the US Securities and Exchange Commission, the investment amount is capped at the lowest of three values: $200 million, 0.98% of Standard Bank Group’s qualifying regulatory capital, or the cost to acquire a 4.99% equity stake at the final IPO price. The acquired shares will be subject to a 12-month lock-up period.

Beyond the capital injection, the two entities have signed a non-binding Memorandum of Understanding to explore digital banking collaborations. This includes potential synergies in merchant acquiring, payments, lending, and remittances, combining Standard Bank’s infrastructure with OPay’s digital merchant network. Additionally, Lungisa Fuzile, the former CEO of Standard Bank South Africa, is slated to join OPay’s board as a non-executive director.