GCash gets SEC nod for stock split

Popular e-wallet GCash’s parent firm has received the green light for a stock split transaction seen to boost the prospects of its much-anticipated stock market debut.

Globe Telecom Inc. on Tuesday told the bourse that the Securities and Exchange Commission had approved the stock split of Globe Fintech Innovations Inc. or Mynt. This raised the number of its common shares to 71.66 billion from 2.15 billion previously.

However, Mynt’s authorized capital stock remains at P2.15 billion, as the par value was cut to P0.03 per share from P1.

This comes just months after Globe’s board of directors approved the stock split transaction, which is seen as a way to raise interest in GCash’s future initial public offering (IPO).

While the listing has yet to be finalized and scheduled, the stock split ultimately makes the shares of GCash more affordable for investors, analysts earlier said.

In the first semester of the year, Mynt contributed 26 percent to Globe’s pretax net income. As of end-June, Globe’s share in Mynt’s equity earnings reached P3.8 billion, a 78-percent surge as GCash boosted its user base and profitability.

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GCash, which currently has more than 94 million Filipino users, is expected to raise as much as $1.5 billion from its IPO, making it the largest listing in the Philippines.

In April, Ayala Corp. finalized an P18.4-billion agreement to sell to Japan’s Mitsubishi Corp. half of the shares held by the Zobels’ venture capital in GCash.

Mitsubishi subscribed to 18 million common and redeemable preferred shares of AC Ventures Holding Corp.