GLOBE Telecom Inc. has obtained a positive assessment from global investment bank Morgan Stanley as its affiliate Mynt, the parent firm of GCash, moves toward the pricing of what is seen as one of the largest initial public offerings (IPOs) in the Philippines.
Morgan Stanley’s positive view on Globe comes as investor attention intensifies around Mynt’s planned listing, with the Philippine Stock Exchange (PSE) having approved the company’s IPO application and the final offer price scheduled to be determined on Oct. 1.
Mynt is set to offer up to 8.03 billion common shares at a maximum price of P10 apiece, consisting of primary and secondary shares.
The offer period is scheduled for Oct. 6 to 12, with tentative listing date of Oct. 20 under the ticker GCASH.
The IPO could raise up to P80.3 billion based on the firm’s shares, while the overallotment option of up to 1.20 billion additional secondary shares could bring the potential transaction size to around P92.3 billion.
The offering has attracted significant institutional interest, with Mynt announcing commitments from more than 20 global and local cornerstone investors.
For Globe, the transaction is particularly significant because of its stake in Mynt. It remains one of the fintech company’s major shareholders, with its stake reported at about 34 percent before the IPO.
The eventual valuation of Mynt could provide the market with a clearer reference point for the value of Globe’s investment in the GCash parent, although the IPO remains a separate capital-markets transaction.
Morgan Stanley is serving as a joint global coordinator and joint bookrunner alongside J.P. Morgan Securities and UBS AG Singapore Branch.
The investment bank’s continued positive view on Globe comes at a period when investors are closely assessing the prospects of companies exposed to the country’s expanding digital economy, including telecommunications, digital payments and financial technology.
The PSE has described the planned listing as potentially the largest public offering in the exchange’s history.
It also said the IPO could encourage greater participation from retail investors, with subscriptions available through GStocks in the GCash app.
For Globe shareholders, the key market consideration will extend beyond the size of the IPO.
The final price and resulting valuation of Mynt could influence how investors assess Globe’s fintech exposure alongside its core telecommunications business.
Globe’s share price rose by P11.00 to close at P1,570.00 each on Tuesday.
