MYNT Inc. plans to channel the bulk of the fresh capital from an initial public offering (IPO) into expanding its credit technology business, highlighting lending as a key growth driver for the operator of the GCash mobile wallet.
Mynt is expected to receive about P10.6 billion in gross primary proceeds from the IPO, AB Capital & Investment Corp. said, with 60 percent seen being earmarked for credit tech, with the remainder to be used for product development and for general corporate purposes.
“At P6.60/share, Mynt will receive P10.6 billion in gross primary proceeds, earmarked to fund its next phase of growth: 60 percent for credit tech expansion, 20 percent for product development and 20 percent for general corporate purposes,” AB Capital said in an assessment of the offering.
The allocation was said to underscore Mynt’s push to deepen its financial services business beyond digital payments, with its GCash platform already offering credit products including GCredit, GLoan and GGives.
Mynt Chief Finance Officer Evelyn Ng has said that the company was viewing the IPO as providing a foundation for its next phase of growth.
“We believe the final price and allocation provide a strong foundation for Mynt’s next chapter and for creating long-term value for all our shareholders, while continuing to advance our mission of Finance for All,” she said.
AB Capital said the offering would give investors direct exposure to one of the country’s largest digital platforms and the expansion of fintech.
It noted, however, that the IPO could also have near-term implications for the local market, with about P16.5 billion of the base offer still to be placed after cornerstone commitments of P36.5 billion from 27 institutions.
“After cornerstone commitments, approximately P16.5 billion of the base offer, or P24.4 billion with full greenshoe, remains to be placed. This could add to near-term liquidity pressure to the local market amid foreign outflows and weak sentiment, although macro factors remain the primary headwind,” AB Capital said.
Mynt’s public offer period will run until Oct. 12, with its shares expected to begin trading on the Philippine Stock Exchange under the ticker symbol GCASH on Oct. 20, subject to regulatory approvals and other customary conditions.
