GCash targets record P92.3-B Philippine IPO
GCash operator Mynt Inc. is preparing what could become the largest initial public offering (IPO) in Philippine history, with plans to raise as much as P92.3 billion in a landmark listing that could reinvigorate interest in the local stock market.
According to a Bloomberg report, Mynt plans to sell up to 9.23 billion shares, including an over-allotment option, at as much as P10 apiece.
The transaction could raise as much as about $1.5 billion, surpassing the roughly $1 billion initial public offering completed by Monde Nissin Corp. in 2021, currently the country’s largest IPO on record.
The offered shares, including the over-allotment option, would account for 13.8 percent of Mynt’s outstanding capital stock, according to Bloomberg’s report.
Mynt’s key shareholders include Globe Telecom Inc., Ant International and Mitsubishi UFJ Financial Group Inc.
The company earlier secured approval from its board and shareholders to file a listing application with the Philippine Stock Exchange, although it has yet to officially announce the size and pricing of the offering.
A Mynt representative told Bloomberg that the company does not comment on market speculation beyond publicly disclosed information.
Market participants said demand should be sufficient to absorb an offering of such size.
“A combination of foreign and domestic liquidity can absorb the offer size,” said China Bank Capital managing director Juan Paolo Colet.
“As long as the valuation is reasonable and the financial technology story remains bright, then this mega-IPO is well-positioned for a strong market debut,” Colet said.
GCash has grown from a text-based money transfer service launched in 2004 into the country’s largest mobile wallet, with 90 million registered users and a growing presence in lending, investments and savings products.
Its rapid expansion has also translated into stronger earnings contributions to parent Globe Telecom.
Ron Acoba, chief investment strategist at Trading Edge Consultancy said GCash’s contribution to Globe’s net income has climbed to around 25 to 30 percent in recent years, supported by robust earnings growth.
“The earnings contribution and growth contribution of GCash over the last several quarters have definitely been there,” Acoba said.
Still, investors will likely focus on whether the fintech giant can sustain that momentum after listing.
“The question now is, what about moving forward?” Acoba added. “There are still many areas that GCash can monetize.”
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said a record-breaking IPO would send a strong signal to both local and foreign investors and could help revive activity in the Philippine equities market.
“This could help bring back some interest and excitement in the local stock market,” Ricafort said, noting that investors are increasingly looking for exposure to fast-growing fintech companies with dominant market positions.
