# Exclusive-SoftBank considering US listing for its PayPay business – sources Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-07-12 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: SoftBank considering U.S. listing for PayPay payments Meta Description: SoftBank is considering a U.S. listing for its profitable PayPay payments business, aiming for higher valuations. Learn more about the potential IPO here. URL: https://financedigest.com/exclusive-softbank-considering-us-listing-for-its-paypay-business-sourceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-07-12t052019z3lynxmpej6b04grtroptp4softbank-paypay-1736813767295-compressed.jpg) # Exclusive-SoftBank considering US listing for its PayPay business – sources By Sam Nussey and Miho Uranaka TOKYO (Reuters) -SoftBank is considering a U.S. listing for its PayPay [payments business](https://www.financedigest.com/late-payments-not-just-a-smaller-business-issue.html "Late payments not just a smaller business issue"), three sources familiar with the matter said, in what could mark another American listing for Masayoshi Son’s sprawling tech conglomerate along with chip designer Arm. New York is seen as a more attractive destination than Tokyo for listings given the higher valuations [tech companies](https://www.financedigest.com/apple-makes-history-as-first-3-trillion-company-amid-tech-stock-surge.html "Apple makes history as first trillion company amid tech stock surge") generally achieve there, one of the sources said. The timing of the listing was still unclear as money-losing PayPay needs to first demonstrate a clear path to profitability, the source said. SoftBank has previously set a PayPay listing as a goal, with one [executive saying](https://www.financedigest.com/uber-executive-says-european-taxis-joining-platform.html "Uber executive says European taxis joining platform") in November it was worth just under 1 trillion yen ($7.17 billion). That the conglomerate is considering a U.S. [listing has not been previously reported](https://www.financedigest.com/naturgys-profit-rises-on-lng-gains-soothing-shareholders-by-pietro-lombardi-madrid-reuters-spanish-power-utility-naturgy-reported-on-monday-an-88-jump-in-profit-for-the-first-six-months-of.html "Naturgy’s profit rises on LNG gains, soothing shareholders By Pietro Lombardi MADRID (Reuters) – Spanish power utility Naturgy reported on Monday an 88% jump in profit for the first six months of the year, boosted by strong earnings at its liquefied natural gas (LNG) business, which could help it to win over restive investors. Earlier this month, the company said it would increase its dividend floor through 2025 while trimming expected investment, as it sought to make rewarding shareholders a priority. Pleasing them has become a focus as Naturgy considers changes that could reshape the company and after arguments over the potential appointment of a chief executive. Naturgy’s first-half net profit jumped to 1.05 billion euros (.16 billion), boosted by its liquefied natural gas (LNG) business. Shares were down 0.2% in mid-morning trading, bucking deeper declines, in particular for Spain’s blue-chip banks and utilities after a general election on Sunday produced no clear winner. Renta 4 Banco analyst Angel Perez Llamazares said Naturgy performed better than expected, adding “cash flows also beat our expectation,” and debt fell more than expected. After natural gas prices hit record levels last year, Naturgy said a fall in procurement costs this year and hedging gains had boosed profits. In the first half of the year, the company “exceeded the objectives of operating efficiency, cash generation, investment materialisation and debt reduction,” Executive Chairman and CEO Francisco Reynes said. After rival Iberdrola named a separate CEO last year, Naturgy is the only large energy company in Spain to combine the roles of executive chairman and CEO. Earlier this month, the company raised the dividend floor to 1.40 euros a share, from 1.20 euros. Operating profit (earnings before interest, tax, depreciation and amortisation) is expected to reach 5.1 billion euros, compared with a previous guidance of 4.8 billion euros. It said it was targeting net profit of 1.8 billion euros in 2025. Naturgy also relaunched its plan to split regulated infrastructure operations and liberalised energy businesses into two listed companies. The project had been suspended after the Ukraine war disrupted energy markets and analysts are still sceptical. “We believe it is unlikely that Naturgy will be able to implement its asset split in the short term and it is also unlikely that a big change in the shareholding of the company would occur,” said RBC analyst Fernando Garcia. ( = 0.8986 euros) (Reporting by Pietro Lombardi, editing by Inti Landauro and Barbara Lewis)"). Representatives for PayPay and SoftBank Group’s domestic telecoms business, SoftBank Corp, said they would not comment on speculation. PayPay is owned by SoftBank Corp, its internet business, Z Holdings, and the [group’s second Vision Fund](https://www.financedigest.com/adnami-secures-series-a-funding-from-qntm-group.html "Adnami secures series A funding from QNTM Group"). All of the sources declined to be identified as the information is not public. SoftBank Group shares closed up 2%, with Z [Holdings surging almost 6% in their biggest one-day gain](https://www.financedigest.com/oil-struggles-to-hold-gains-amid-mixed-demand-view.html "Oil struggles to hold gains amid mixed demand view") since February. [Listings of Japanese companies](https://www.financedigest.com/papaya-global-makes-historical-impact-first-payroll-payments-company-included-in-time100s-2023-most-influential-companies-list.html "Papaya Global Makes Historical Impact – First Payroll & Payments Company Included in TIME100’s 2023 Most Influential Companies List") in New York are rare. Tokyo-based chat app operator Line had a dual [listing in 2016 and later merged](https://www.financedigest.com/london-stock-exchange-pours-cold-water-on-merging-listing-segments.html "London Stock Exchange pours cold water on merging listing segments") with SoftBank’s internet business, with more recent examples including the listing of Syla Technologies in March, according to Dealogic. Z Holdings [shares reacted on hopes](https://www.financedigest.com/european-shares-rally-as-china-stimulus-lifts-recovery-hopes.html "European shares rally as China stimulus lifts recovery hopes") that a U.S. listing might invite a premium valuation but recent domestic listings for Rakuten Bank and SBI Sumishin Net Bank [indicate](https://www.financedigest.com/new-research-indicates-confusing-bank-jargon-could-be-fuelling-financial-vulnerability.html "New research indicates confusing bank jargon could be fuelling financial vulnerability") there is room for fintech listings locally,” said analyst Kirk Boodry at Astris Advisory Japan, who values PayPay at 800 billion yen to 900 billion yen. ## NARROWING LOSSES SoftBank founder Son recently pledged to shift to “offence mode” amid rising global interest and investment in [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "artificial intelligence"). He has been playing defence for some time, curbing his [investments after the tech sell-off hit the value](https://www.financedigest.com/growth-vs-value-investing-comparing-investment-approaches.html "Growth vs. Value Investing: Comparing Investment Approaches") of his portfolio companies hard. PayPay, which offers QR code payment services, is used by more than 55 million people in Japan, making it a [top player in a crowded digital payments market](https://www.financedigest.com/benzylamine-market-top-key-players-latest-trends-regional-insights-and-global-industry-dynamics-by-2026.html "Benzylamine Market Top Key Players, Latest Trends, Regional Insights and Global Industry Dynamics By 2026"). It has benefited from a government-backed effort to encourage consumers to shift [towards digital](https://www.financedigest.com/the-mass-spectrometry-market-to-tilt-towards-digitization.html "The Mass Spectrometry Market to tilt towards digitization") away from cash and grew quickly by offering aggressive rebates. PayPay booked a loss before interest, taxes, depreciation and amortisation of 11.9 billion yen in the [year ended March, compared to a loss of 43.2 billion yen a year earlier](https://www.financedigest.com/uk-car-output-jumps-27-in-may-from-year-earlier-on-steady-ev-demand.html "UK car output jumps 27% in May from year earlier on steady EV demand"). The telecoms [business is targeting profitability for its financial](https://www.financedigest.com/what-green-criteria-sustainable-finance-houses-look-for-when-conducting-due-diligence-and-how-businesses-seeking-to-attract-investment-can-get-their-house-in-order.html "What green criteria sustainable finance houses look for when conducting due diligence, and how businesses seeking to attract investment can get their house in order") unit, which includes PayPay, by the year ending March 2026. PayPay is the most widely mobile payment service in Japan, according to a [survey of users](https://www.financedigest.com/gen-z-significantly-prefers-user-generated-content-older-millennials-lean-toward-streaming-inmobi-insights-survey-shows.html "Gen Z Significantly Prefers User-Generated Content, Older Millennials Lean Toward Streaming, InMobi Insights Survey Shows") by Mobile Marketing Data Labo. SoftBank is planning an initial public offering for Cambridge, England-based [chip designer Arm](https://www.financedigest.com/analysis-arms-clients-turn-ipo-into-tug-of-war-for-chip-influence.html "Analysis-Arm’s clients turn IPO into tug of war for chip influence") in the U.S. as it looks to raise funds following the slump in tech valuations. ($1 = 139.5500 yen) (Reporting by Sam Nussey and Miho Uranaka; Additional reporting by Scott Murdoch; Editing by David Dolan and Muralikumar Anantharaman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---