INVESTOR demand for Mynt Inc.’s initial public offering (IPO) exceeded share allocations at several brokerages, with one firm reporting subscriptions more than four times its assigned quota, as investors bet on the growth prospects of GCash’s parent company ahead of its stock market debut.
AB Capital Securities Inc., which handles subscriptions through GCash’s GStocks PH platform, reported that its allocated shares were 165.11 percent oversubscribed as of Friday. Regina Capital Development Corp. head of sales Luis Limlingan, meanwhile, said his firm’s allocation was oversubscribed four times.
Domestic trading participants and retail investors were allocated 2.41 billion shares, equivalent to 30 percent of the base offering of about 8.03 billion shares, according to the offering details.
COL Financial Inc.’s head of research April Tan attributed the strong investor interest partly to the participation of about 22 cornerstone investors along with the attractive offer price.
“And the price is also good, not expensive,” she added.
In a client memo issued Monday, COL Financial said Mynt retained significant growth potential through GCash, which had 41.5 million monthly active users, equivalent to 56 percent of the country’s adult population.
The brokerage noted that digital payment adoption in more developed markets typically reaches 70 percent to 80 percent of the adult population, suggesting room for GCash to expand its user base.
GCash also had 7.5 million active borrowers, representing about 18 percent of its monthly active users, indicating potential to expand its lending business, COL Financial said.
The platform could also grow through merchant acquisition and overseas remittance services for overseas Filipino workers.
SeA Focus Portfolio hedge fund manager Eric Jurado said the P6.60-per-share IPO price did not require Mynt to sustain its historical earnings growth rate to justify its valuation.
He said the offer price assumed annual growth of 15 percent from Mynt’s 2025 net income of P17.15 billion, or a 25.8 percent growth rate from 2026 to 2028, which he considered achievable based on the company’s historical performance.
“Given GCash’s market leadership, 41.5 million monthly active users, expanding financial ecosystem, and continued shift toward digital payments in the Philippines, I believe that is a realistic hurdle,” Jurado said.
He added that investors could benefit if Mynt’s earnings growth exceeded the rate implied by the offer price, potentially prompting the market to recognize greater earnings capacity.
COL Financial estimated that at P6.60 per share, Mynt would be trading at 21.7 times its projected 2026 earnings and 17.1 times its projected 2027 earnings, well below regional peer averages of 33.3 times and 24.2 times, respectively.
Mynt wrapped up its IPO on Monday and is scheduled to list on the Philippine Stock Exchange on Oct. 20 under the ticker symbol GCASH.
The base offering comprises 1.61 billion primary shares and 6.42 billion secondary shares for a total of about 8.03 billion shares, with an additional 1.2 billion secondary shares available through an over-allotment option.
At P6.60 per share, the base offering could raise about P53 billion, with total proceeds reaching approximately P60.9 billion if the over-allotment option is fully exercised.
Mynt expects to receive P10.6 billion in gross proceeds from the primary share offering, of which it plans to allocate 60 percent to its credit technology business, 20 percent to product innovation, and the remaining 20 percent for general corporate purposes.
