SoftBank is considering a U.S. listing for its PayPay payments business, 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 given the higher valuations tech companies generally achieve, 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 expressed an aim to list PayPay, with one executive saying 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.
All of the sources declined to be identified as the information is not public.
Representatives for PayPay and SoftBank Group’s (9984.T) domestic telecoms business, SoftBank Corp (9434.T), said they did not comment on speculation. PayPay is owned by SoftBank Corp, its internet business, Z Holdings (4689.T), and the group’s second Vision Fund.
SoftBank founder Son recently pledged to shift to “offence mode” amid rising global interest and investment in artificial intelligence. He been playing defence for some time, curbing investment after the tech sell-off hit the value of portfolio companies hard.