Mynt Inc., the operator of mobile wallet GCash, is preparing what could become the Philippines' largest initial public offering (IPO), with plans to raise as much as P92.3 billion, according to a report on Friday.
Market observers said an offering of that size could be absorbed by investors, provided the company is reasonably valued, although they noted that key details such as the mix of shares, cornerstone investors and the use of proceeds would remain crucial once the IPO is officially announced.
"A combination of foreign and domestic liquidity can absorb the offer size. As long as the valuation is reasonable and the fintech story remains bright, then this mega-IPO is well-positioned for a strong market debut," China Bank Capital Managing Director Juan Paolo Colet told The Manila Times.
Investment and Capital Corp. of the Philippines president and COO Manny Ocampo said investors would also be watching whether Mynt would bring in cornerstone investors similar to those in Maynilad's IPO, as well as the mix of primary and secondary shares and the planned use of proceeds.
"In any case, this should be a very interesting IPO," Ocampo said.
The report said Mynt plans to offer up to 9.23 billion shares, including an over-allotment option, at up to P10 apiece, with an official announcement possibly coming as early as Friday.
"Beyond publicly disclosed information, as a matter of policy, we do not comment on market speculation," a Mynt representative said in response to the report.
If completed at the reported size, the IPO would surpass the roughly $1 billion raised by Monde Nissin Corp. in 2021, making it the largest stock market debut in Philippine history.
The report added that the offered shares, including the over-allotment option, would account for about 13.8 percent of Mynt's outstanding capital stock.
Earlier this month, Mynt secured board and shareholder approval to file an application to list on the Philippine Stock Exchange.
Previous reports said the fintech company had been targeting to raise between $1 billion and $1.5 billion.
GCash, which started as Globe Telecom's text-based money transfer service in 2004, has grown into the country's largest mobile wallet with about 90 million registered users.
Mynt's major shareholders include Globe Telecom Inc., Ant International and Mitsubishi UFJ Financial Group Inc.
