MARKET watchers said the planned initial public offering (IPO) of GCash operator Mynt could value the company at around $8 billion to $9 billion, although they stressed that timing and market conditions remain critical to the IPO execution.
“The IPO is highly anticipated and could potentially value the company at around $8 to $9 billion. They’ve been preparing for this for years, so it’s just a matter of timing,” said Chinabank Capital Corp. managing director Juan Paolo Colet.
He said that while local market conditions remain challenging, the offering could still stand out given its scale and growth profile.
“This is the kind of IPO story that has the chance to outperform in this environment,” he said, adding that risks include a further economic slowdown, inflationary pressures, political instability, and geopolitical tensions such as the conflict in the Middle East.
He said a more favorable listing window would likely emerge when the Philippine Stock Exchange index is closer to the 6,500 level.
RCBC chief economist Michael Ricafort said pricing and investor appetite would ultimately determine the success of the planned share sale.
“It depends on whether the price is acceptable or high enough from the point of view of the sellers or issuers. Prices are also a function of market conditions and appetite,” Ricafort said.
The RCBC economist added that some long-term investors may take advantage of weaker market conditions to accumulate positions, although large IPOs could temporarily weigh on liquidity in the local bourse.
“Large IPO or share sale could also sap pesos from the market or other listed local shares if investors that buy need to raise funds,” Ricafort said.
For his part, Globe Telecom Chief Financial Officer Carlo Puno told The Manila Times that no final decision has been made on the IPO.
“No final decision has been made on timing, size or structure, and any process would remain subject to board, regulatory and market conditions,” Puno said.
Globe is a stakeholder in Mynt.
The Globe official added that the company will continue to prioritize execution of its core business and will ensure proper disclosures once any definitive decision is reached.
Speaking at the PSE STAR Investor Day on Friday, Globe Senior Director for Investor Relations Jose Mari Fajardo said discussions on a GCash IPO remain open but uncertain.
“The situation remains fluid, but having said that, shareholders remain open to various capital solutions, including an IPO. However, no official decision yet has been made regarding timing,” Fajardo added.
