QIA, Visa, and ADIA to Anchor SoftBank's PayPay IPO: Sources

• PayPay targets $14 billion valuation in what could be the largest U.S. listing for a Japanese company, with the IPO originally delayed from December due to U.S. government shutdown
• SoftBank is divesting assets to fund AI investments, having already sold $5.8 billion in Nvidia and $4.8 billion in T-Mobile shares after completing a $41 billion investment for 11% of OpenAI
• PayPay has 72 million registered users as of December 31 and recently partnered with Visa to expand into the U.S. market

Summary: PayPay IPO Targets $14 Billion Valuation with Major Anchor Investors

Key Details:

SoftBank's digital payments subsidiary PayPay is preparing for a U.S. IPO on Nasdaq next month, targeting a valuation of up to $14 billion. This would represent the largest listing of a Japanese company on a U.S. exchange. Major cornerstone investors—Qatar Holdings (Qatar Investment Authority), Visa, and Abu Dhabi Investment Authority—are preparing to invest over $200 million collectively, though no final commitments have been made.

Company Background:

Founded in 2018 as a joint venture between SoftBank and Yahoo Japan, PayPay has become Japan's leading digital payment platform with approximately 72 million registered users as of December 31. The company recently partnered with Visa to facilitate U.S. expansion. The IPO was initially scheduled for December but delayed due to a U.S. government shutdown affecting regulatory processes.

Strategic Context:

The IPO is critical for SoftBank's broader AI investment strategy. CEO Masayoshi Son is liquidating assets to fund aggressive AI spending, including a $30 billion commitment to OpenAI (bringing total investment to approximately $41 billion for an estimated 11% stake). SoftBank has already sold $5.8 billion in Nvidia shares and $4.8 billion in T-Mobile U.S. stock to generate capital.

Market Implications:

The successful listing would provide SoftBank with additional liquidity for its AI ambitions while establishing PayPay's presence in the competitive U.S. payments market. The participation of sovereign wealth funds signals strong institutional confidence in the Japanese fintech sector's international expansion potential.