(Bloomberg) — SoftBank Group Corp.’s (SFTBY, 9984.T) digital payment provider PayPay Corp. has confidentially filed a draft registration to debut on the US stock market in a deal that could mint Japan’s first $10 billion unicorn.
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SoftBank is seeking a valuation for PayPay of ¥1.5 trillion ($10 billion) or more, according to people familiar with the matter, who declined to be named as discussion isn’t public. If the plans go ahead, it may be the largest IPO for a Japanese company on a US stock exchange, according to data compiled by Bloomberg.
SoftBank Corp., which owns a stake in PayPay, didn’t immediately respond to a request for comment outside regular business hours. Its parent SoftBank Group, as well as PayPay, declined to comment on the valuation.
PayPay, the country’s dominant QR-code payments application, was originally set up through a venture with former Vision Fund portfolio company Paytm. A transaction last year valued the Japanese firm at around $7 billion at that time, according to local media reports.
The exact schedule, size, and price for the public listing of PayPay’s American depositary receipts are yet to be decided, SoftBank said in a statement Friday. The feasibility of a listing is subject to market and other conditions, and is contingent on the completion of SEC’s review, it said.
SoftBank has been recently working to monetize some of its assets and Vision Fund bets to finance Masayoshi Son’s new investments in artificial intelligence. This includes an additional sale of $3 billion worth of shares in T-Mobile US Inc.
Reuters earlier this month reported that the Japanese company has picked investment banks for PayPay’s US IPO.
PayPay will continue to be a subsidiary of SoftBank Corp. following the public offering and the Japanese conglomerate doesn’t expect the listing to have any material impact on its consolidated earnings, the statement said.
—With assistance from Gareth Allan and Takahiko Hyuga.
(Updates with response from companies)
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