‘Uncertainty’ over Trump tariffs delays GCash IPO
US President Donald Trump’s sweeping tariff imposition, which has put pressure on global markets, has made it more challenging for GCash to launch its highly-anticipated initial public offering (IPO).
This is according to a Globe Telecom official, but the e-wallet service provider remains keen on its market debut nonetheless.
The operator of GCash, Mynt (Globe Fintech Innovations Inc.), is a joint venture among Globe, Ant Group, Ayala Corp.
Carlo Puno, chief financial officer (CFO) and treasurer of Globe, said in a media briefing on Tuesday Trump’s Liberation Day announcement had “added a lot of uncertainty.”
“I think this uncertainty does not stop us from preparing. The goal here is to get GCash to a point where we are push-button ready,” Puno said.
Last April 2, Trump announced a minimum 10-percent tariff on all products entering the US, a move that is seen to fuel a trade war. This has soured investor sentiment, triggering a massive sell-off in stock markets around the world.
“If we find the window where the valuations and interest we’re getting are appropriate and acceptable, we will push that button for IPO,” the CFO said.
“Whether that happens this year or next year, it is really dependent on how this whole liberation in tariff evolves over the next few months,” he added.
Carl Raymond Cruz, the newly minted president and CEO of Globe, said they were working towards making the IPO a success, but this would also require a sound market condition.
“We want to ensure the macro(economic) environment when we do the IPO will be very conducive for this particular offering to be the most successful in the Philippine market,” he stressed.
Analysts have expressed optimism on GCash finally making its market debut, especially after achieving a $5-billion valuation last year.
The Philippine Stock Exchange (PSE) has even allowed companies to offer only 15 percent of shares to the public—below the existing 20-percent minimum—to attract more listings, including that of GCash.
According to PSE president and CEO Ramon Monzon, GCash previously said that a 20-percent public float might be “too big for the market to absorb.”
GCash has been scaling up its presence ahead of its planned market debut.
It has partnered with United States-based money transmitter Viamericas to allow overseas Filipino workers (OFW) in North America to send money home in real time via the GCash app.
GCash is also collaborating with Middle Eastern remittance platform Al Fardan, targeting the OFW market.
