GCash IPO draws oversubscribed broker orders

Demand for Mynt Inc.’s initial public offering (IPO) exceeded the shares allotted to several brokers, as investors sought a stake in the company behind GCash ahead of its Oct. 20 stock market debut.

Regina Capital and Development Corp.’s allocation was four times oversubscribed, according to its head of sales, Luis Limlingan.

AB Capital Securities Inc., which accepts subscriptions through the GCash app, reported that its allocation was 165.11-percent oversubscribed as of Friday last week.

About 2.41 billion shares were reserved for domestic trading participants and local small investors, equivalent to 30 percent of the 8.03-billion-share base offer.

COL Financial Inc. chief investment strategist April Tan also reported strong retail interest. She said commitments from about 22 cornerstone investors helped encourage participation.

“And the price is also good, not expensive,” Tan said.

In a client note, COL Financial said GCash still had opportunities to expand despite its large user base.

Its 41.5 million monthly active users (MAUs) account for 56 percent of the country’s adult population. COL compared this with a penetration of 70 percent to 80 percent in more developed digital payment markets.

“On lending, GCash has 7.5 million active borrowers, equivalent to only around 18 percent of MAUs, indicating significant room for further credit penetration,” it said.

More opportunities

The brokerage also cited opportunities in merchant acquisition and overseas Filipino workers’ remittances.

Greater use of the app and its services was helping increase transaction values, it added.

At the P6.60 offer price, COL valued Mynt at 21.7x 2026 forward price-to-earnings (P/E) and 17.1x 2027 forward P/E. These were below regional peer averages of 33.3x and 24.2x, respectively.

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Eric Jurado, hedge fund manager at SEA Focus Portfolio, said the price implied earnings growth of 25.8-percent annually from 2026 to 2028. Mynt’s 2025 net income stood at P17.15 billion.

“GCash is becoming a much larger business, and maintaining very high growth becomes harder as the earnings base expands. But the point is that P6.60 does not require heroic assumptions. It does not require GCash to maintain its 39 percent historical CAGR,” Jurado said.

Mynt’s offer period ran from Oct. 6 to Oct. 12. It is scheduled to list on the Philippine Stock Exchange under the ticker GCASH on Oct. 20.

The base offer comprises 1.61 billion primary shares and 6.42 billion secondary shares, worth about P53 billion at P6.60 each.

An overallotment option of up to 1.20 billion secondary shares could bring the total to 9.23 billion shares and P60.9 billion, making it the country’s largest IPO if fully exercised.

Mynt expects gross primary proceeds of P10.6 billion. It plans to allocate 60 percent to CreditTech, 20 percent to product innovation and 20 percent to general corporate functions.