According to sources, PayPay, owned by SoftBank, plans to set the IPO price in the United States

The order book was more than five times oversubscribed, according to a source.

Tencent, Alipay, and Google are set to invest in the IPO, according to a source.

PayPay faced a bumpy road before its IPO.

SoftBank’s Arm was listed in the United States in 2023.

Details about PayPay’s user base are being added.

The IPO of SoftBank’s PayPay is expected to be priced near the lower end of its marketing range, as the Middle East conflict disrupts markets, two people familiar with the matter said.

PayPay’s order book was more than five times oversubscribed and has now closed, with the price to be finalized after the close of US markets on Wednesday, one of the individuals said.

The Japanese payment app operator offered 55 million American depositary shares at a price range of $17 to $20 per unit, aiming for a valuation of up to $13.4 billion.

These individuals declined to be identified because the information is not public. PayPay declined to comment.

Tencent, Ant Group’s Alipay, and Google’s Alphabet have committed to investing in the IPO, one of the individuals said.

The companies did not respond to requests for comments.

PayPay has played a central role in encouraging Japanese consumers to shift away from cash by offering discounts on its payment app.

It has over 70 million registered users.

However, the company faced hurdles before going public. Its IPO roadshow was initially postponed after markets were shaken by the conflict in the Middle East, as reported by Reuters last week.

PayPay had already postponed its IPO last year during the US government shutdown, which disrupted regulatory processes and delayed the filing of regulatory documents.

Despite recent market volatility, the US IPO market is expected to see a strong rebound this year. Goldman Sachs predicts that IPO proceeds could quadruple to a record $160 billion by 2026, with potential debuts such as Elon Musk’s SpaceX and AI companies OpenAI and Anthropic.

PayPay would mark the first US listing of a SoftBank majority investment since the successful Arm IPO.

SoftBank took chip designer Arm public in 2023 at a valuation of $54.5 billion, and its market capitalization has since soared to nearly $130 billion.

Goldman Sachs, J.P. Morgan, Mizuho, and Morgan Stanley are the lead underwriters for the PayPay offering.

PayPay plans to list on the Nasdaq under the symbol “PAYP”. Reuters first reported its US listing plans in 2023.