GCash owner seeks up to 92.3 billion pesos in record Philippine IPO

[MANILA] The company behind the Philippines’ biggest mobile wallet GCash is preparing what may become the country’s biggest initial public offering ever, seeking to raise as much as 92.3 billion pesos (S$2 billion).

Mynt expects to sell up to 9.23 billion shares, including through an over-allotment option, at up to 10 pesos apiece, according to a source with knowledge of the matter.

An official announcement could come as soon as Friday (Jun 26), said the source, who asked not to be identified because the information is not public yet.

“Beyond publicly disclosed information, as a matter of policy, we do not comment on market speculation,” a representative for Mynt said.

Mynt, whose key shareholders include Globe Telecom, Ant International and Mitsubishi UFJ Financial Group, could raise more than the 2021 IPO of Monde Nissin, which secured around US$1 billion. The company offers investors exposure to a population of more than 110 million people who are increasingly using digital payments rather than cash.

Mynt’s IPO also comes as the Philippine stock market, which has grappled with low trading volumes and a spate of delistings, sees improved sentiment due to recent easing of tensions in the Middle East and a wave of tech listings abroad.

Major Philippine telco PLDT this week said that it’s looking to raise up to US$397 million from the listing of a real estate investment trust for its data centre business.

Mynt’s offered shares, including the over-allotment option, would comprise 13.8 per cent of Mynt’s outstanding capital stock, the source said.

The fintech company won approval from its board and shareholders earlier this month to file for a listing application with the Philippine Stock Exchange. It has been looking to raise between US$1 billion and US$1.5 billion, Bloomberg News earlier reported, citing sources familiar with the matter.

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GCash, which began as Globe Telecom’s text-based money transfer service in 2004, has 90 million registered users and is the South-east Asian nation’s largest mobile wallet.

The app has expanded into credit, investment and savings services from payments, becoming ubiquitous since the pandemic.

Market participants have been waiting for Mynt’s IPO for some time. Regulators have eased the rules on the minimum public float requirement for IPOs to encourage large listings. BLOOMBERG