[U.S. IPO Watch] SoftBank’s Big Move – PayPay’s $2 Billion Offering Could Be Just the Beginning

TradingKey – SoftBank Group is accelerating plans to take its mobile payments giant PayPay public in the U.S. According to multiple U.S. media sources citing insiders, SoftBank has selected Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Mizuho Financial Group as lead underwriters for PayPay’s initial public offering (IPO), marking a critical phase in the project’s advancement.

Founded in 2018 as a joint venture between SoftBank and Yahoo Japan, PayPay has become the dominant player in Japan’s mobile payments market with tens of millions of users. Centered on QR code payments, the company has steadily expanded into integrated financial services including bank accounts, credit cards, and personal loans, driving Japan’s shift from a cash-dominated society toward digital payments.

The IPO aims to raise over $2 billion and is planned for the fourth quarter of 2025, with timing and final fundraising size subject to U.S. market conditions.

If successfully executed, this would be SoftBank’s largest IPO since its chip unit Arm went public in the U.S. in 2023, raising $54.5 billion. Arm’s listing saw its market capitalization briefly exceed $145 billion, delivering substantial paper gains for SoftBank, fueling high market expectations for PayPay’s capital prospects.

Reuters analysts note that a U.S. listing will not only help SoftBank raise funds but also boost PayPay’s international brand presence, laying a foundation for future cross-border expansion. Moreover, the U.S. capital market’s valuation premium for high-growth tech platforms could further unlock PayPay’s potential value.

With a top-tier investment banking team in place, PayPay’s IPO is now in substantive preparation. Upcoming disclosures such as the prospectus, financial data, and pricing range will be key for global investors assessing its growth potential and profitability.

Additionally, some market views suggest this move signals a broader trend of Japanese new economy companies seeking wider capital access through U.S. equity markets.