MANILA, Philippines — The success of GCash operator Mynt Inc.’s initial public offering should not be measured by whether its shares are priced at the maximum P10 ceiling, but by the quality of investor demand and the company’s ability to create value after listing, a capital market expert said.
Jonathan Ravelas said the P10 figure in Mynt’s regulatory filings was only a ceiling and not a target valuation or a guarantee that the shares would be offered at that price.
“The P10 is a ceiling, not a promise, and certainly not a measure of whether the IPO succeeds or fails,” Ravelas said during the Kapihan sa Manila Bay media forum.
He said the actual offer price would be determined through the book-building process, which would gauge investor demand and take into account Mynt’s fundamentals, industry comparisons, market conditions and the structure of the offering.
His comments came after the Philippine Stock Exchange on Friday approved Mynt’s application to list its shares on the PSE Main Board under the ticker GCash.
The offering covers up to 8.03 billion firm shares, consisting of up to 1.61 billion primary shares and 6.42 billion secondary shares, with an over-allotment option of up to 1.20 billion secondary shares.
At the P10 ceiling, the transaction could raise about P92.3 billion if the over-allotment is fully exercised, potentially making it the largest public offering in Philippine stock market history.
The final offer price is scheduled to be set on Oct. 1 following book-building. The public offer period is scheduled for Oct. 6 to 12, with the tentative listing date set for Oct. 20.
For investors, Ravelas said the more important consideration is whether the IPO attracts strong, long-term institutional support that can provide a solid foundation for Mynt’s growth after it becomes a publicly traded company.
He also pointed to the company’s potential to further expand its digital financial services by building on the large user base of GCash.
Mynt has been broadening GCash beyond its core digital-wallet functions into services such as lending, investments, savings, payments and other financial products.
Ravelas said further diversification could allow the company to generate more revenue from its existing ecosystem of more than 90 million registered users and 49 million active accounts.
He said the company still has significant room to grow as it turns its large user base into a broader digital financial services platform.
Ravelas also said the listing could broaden participation in the capital market by allowing ordinary Filipinos to become shareholders of one of the country’s largest digital-finance platforms.
The PSE said local retail investors may subscribe through its PSE EASy platform, while GCash users will also be able to access the offering through the GStocks feature in the GCash app.
Scam Watch Pilipinas co-founder Jocel De Guzman welcomed the broader retail participation while stressing the need for continued consumer protection and greater awareness of digital security risks as more Filipinos participate in digital finance and the capital market.
Trade and Industry Secretary Cristina Roque earlier cited the wider economic implications of digital payments, particularly for micro, small and medium enterprises seeking to reach customers beyond traditional markets.
She said digital payment infrastructure could help local businesses reach consumers in remote areas and prepare for greater regional and cross-border commerce under the planned Asean Digital Economy Framework Agreement.
Proceeds from the primary share sale will be used for the expansion of Mynt’s digital financial services, technology infrastructure, product development and other general corporate purposes.
