Softbank Group Corp (SFTBY.US) subsidiary PayPay Corp. has confidentially submitted a draft registration for a US public offering, a move that could create Japan's first "unicorn" company valued at over $10 billion. According to sources familiar with the matter, Softbank Group Corp has set a valuation target of more than 1.5 trillion yen (approximately $10 billion) for PayPay. These individuals requested anonymity as the discussions remain private.

Compiled data indicates that if the listing succeeds, it would represent the largest IPO by a Japanese company on US stock exchanges. SoftBank Corp., which holds PayPay shares, did not immediately respond to requests for comment during after-hours trading. Both its parent company Softbank Group Corp and PayPay declined to comment on the valuation speculation.

As Japan's leading QR code payment application by market share, PayPay was initially established as a joint venture with Paytm, a former portfolio company of the Vision Fund. According to Japanese media reports, a transaction last year valued the company at approximately $7 billion.

In a Friday statement, Softbank Group Corp indicated that the specific timeline, offering size, and pricing for PayPay's American Depositary Receipt listing have not been finalized. The listing plans remain subject to market conditions and must pass through the SEC's review process.

Recently, Softbank Group Corp has been continuously raising funds for Masayoshi Son's new investments in artificial intelligence (AI) through asset securitization and Vision Fund investment exits. This includes its recent additional sale of $3 billion worth of T-Mobile (TMUS.US) shares.

Earlier this month, reports emerged that the Japanese company had selected underwriting banks for PayPay's US IPO. The statement emphasized that PayPay will continue to operate as a subsidiary of SoftBank Corp. following the listing, and the IPO is not expected to have a material impact on Softbank Group Corp's consolidated financial statements.