GCash gets SEC nod for blockbuster P92.3-B IPO
GCash operator Mynt Inc. has secured the corporate regulator’s approval for its initial public offering (IPO) of up to P92.32 billion, becoming the first company to benefit from relaxed public float requirements for large issuers.
On Friday, the Securities and Exchange Commission (SEC) said its commission en banc had resolved to render effective Mynt’s registration statement covering up to 66.9 billion common shares, subject to compliance with remaining requirements.
The regulator also granted Mynt’s request for a minimum initial public float of 12 percent, lower than the 15-percent requirement, under SEC Memorandum Circular No. 11, Series of 2026.
Under the rules, the SEC may allow a lower public float, upon recommendation of the Philippine Stock Exchange (PSE), for issuers with an exceptionally large expected market capitalization.
Mynt expects to have an initial market capitalization of P668.96 billion, well above the P200-billion threshold under the rules.
Ron Acoba, chief investment strategist at Trading Edge, said the lower float was crucial for an IPO of Mynt’s size.
“This comes as no surprise. It’s been announced way beforehand that the SEC was revising its float requirements lower, precisely to accommodate big IPOs, such as Mynt,” Acoba said.
Without the reduction in the minimum float requirement, Acoba estimated Mynt would have needed to sell P133.79 billion worth of shares at P10 each, an amount he said the market would not be able to absorb.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the IPO could signal improved confidence in the local stock market’s ability to raise large amounts of capital from both domestic and international investors.
“There would be relatively large inflows of foreign investments/buyers that would convey their US dollars to pesos to be invested in the local stock market,” Ricafort said. “This could also help increase local stock market trading and activities.”
For the IPO, Mynt plans to offer up to 1.61 billion common shares under the primary offer, while a selling shareholder will offer up to 6.42 billion shares.
The deal also carries an overallotment option of up to 1.20 billion shares, with the shares priced at a maximum of P10 each.
Assuming the overallotment option is oversubscribed, Mynt expects to net up to P89.25 billion from the total offer.
Around P14.95 billion in net proceeds from the primary offer will go toward digital financial services growth, product development and general corporate purposes.
The offer period is scheduled for Oct. 6 to 12, with Mynt targeting an Oct. 20 debut on the PSE main board under the ticker symbol “GCASH.”
For the offering, Mynt tapped BPI Capital Corp. and BDO Capital & Investment Corp. as domestic lead underwriters and joint bookrunners.
Jefferies Singapore Ltd., CLSA Ltd. and HSBC’s Singapore branch will act as international joint bookrunners.
Morgan Stanley & Co. International PLC, J.P. Morgan Securities plc and UBS AG Singapore Branch, meanwhile, were appointed joint global coordinators and joint bookrunners.
