GCash IPO draws strong investor demand
Global institutional investors are lining up for Mynt Inc.’s blockbuster initial public offering (IPO), boosting prospects for what could become the largest listing in Philippine history.
According to a Bloomberg report, International Finance Corp., BlackRock, Capital Group and Schroders are among the investors seeking to participate in the offer.
The institutional investors are reportedly securing shares at around P6.50 apiece, below the maximum offer price of P10. Mynt is expected to finalize the price on Oct. 1.
BDO Unibank Inc. president Ed Francisco said the IPO was attracting strong demand following meetings with more than 150 global investors.
“There is good demand from strong hands, and cornerstones are being finalized,” Francisco said.
Mynt, the operator of GCash, plans to sell up to 13.8 percent of its post-IPO outstanding shares.
Its base offer covers 8.027 billion shares, consisting of 1.61 billion primary shares and 6.42 billion secondary shares.
These represent about 12 percent of the company’s outstanding capital stock.
Another 1.2 billion secondary shares will be available under an overallotment option.
The public offer is scheduled for Oct. 6 to Oct. 12, while the listing on the Philippine Stock Exchange is targeted for Oct. 20. Mynt will trade under the ticker symbol “GCASH.”
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the interest from large global institutions reflected confidence in both GCash and the Philippines’ digital economy.
He added that pricing the shares below the maximum could help Mynt secure a stable market debut amid challenging conditions.
“The fact that the IPO is being priced below the maximum suggests management is prioritizing a successful and sustainable market debut over chasing valuation,” Ravelas said.
He said investors would be watching whether GCash could turn its dominant user base into sustained profitability and wider adoption of digital financial services.
Meanwhile, GCash is now setting its sights on encouraging its nearly 41 million active monthly users to access its in-app investment offerings, as it presses ahead with its own IPO set for October.
Darvin Sy Su, general manager for wealth management at GCash, said the platform is focused on bringing investing to the mass market rather than competing for high-net-worth clients, which, he noted, are already served by traditional brokers and relationship managers.
GCash currently offers access to local stocks, investment funds, government bonds and cryptocurrencies through its wealth platform.
