THE parent company of GCash has taken a step toward going public with its board having approved the filing of a registration statement for a potential initial public offering (IPO) that could be the country’s biggest.
Ayala Corp. and unit Globe Telecom Inc. on Wednesday said that Mynt Inc. — a partnership between Ayala, Globe and China’s Ant Group — was looking to offer 12 percent of its outstanding capital stock with a par value of P0.03 per common share.
“Over the past decade, Mynt has evolved from an e-wallet operator into the Philippines’ number one finance superapp and largest cashless ecosystem,” Mynt President and CEO Martha Sazon said.
“The authorization of our board and shareholders allows us to work toward a potential public listing as the next step in Mynt’s growth journey, while continuing to focus on the priorities that have brought us to this point: serving customers, supporting merchants, strengthening our platform offering and building the business for the long term,” she added.
Analysts welcomed the news, saying it could inject excitement into the Philippine Stock Exchange (PSE) and spur a new wave of public offerings.
“The confirmation that Mynt will finally proceed with its PSE listing is a welcome development and signals a notable shift in market sentiment,” DragonFi Securities analyst Jarrod Tin said.
“We see this as a potential catalyst for the wider IPO pipeline, one that could help revive the capital markets and rekindle the investor enthusiasm the PSE has been missing,” he added.
China Bank Capital Managing Director Juan Paolo Colet said the transaction was shaping up to be the most anticipated Philippine IPO in recent years and could set new fundraising records.
“We expect this deal to smash local equity fundraising records, and it will bring a good measure of excitement to the PSE,” he said.
Colet added that Mynt was aiming to raise more than $1 billion in proceeds, with the valuation expected to reflect both traditional market metrics and “unicorn” growth multiples.
Investment & Capital Corp. of the Philippines President Manny Ocampo, meanwhile, said Mynt’s large user base could help broaden investor participation.
“I think this IPO will be quite positive for the capital markets, especially if they are able to market the offering to the grassroots since it has a user base of more than 93 million,” he said.
“Valuation is expected to be high by traditional market metrics, but compared with unicorn valuations, it is quite reasonable. If marketed correctly, this should be very successful.”
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the IPO “could help bring back some interest and excitement in the local stock market, by both foreign and local investors.
He cited easing geopolitical tensions and lower oil prices as supportive factors for large equity offerings.
Still, Tin cautioned that investor demand was not guaranteed given the expected size of the transaction.
“As what is shaping up to be the largest IPO in PSE history, Mynt will need significant liquidity to absorb its float,” he said.
GCash’s dominant market position and strong brand recognition, however, was said to give it an edge over other large listings.
GCash is the Philippines’ leading e-wallet and digital finance superapp with around 94 million users.
Ayala shares rose by 20 centavos, or 0.05 percent, to P399.80 while those of Globe surged by P87, or 5.05 percent, to P1,809 apiece amid a 2.10-percent plunge for the benchmark Philippine Stock Market index.
