STRONG demand from local institutional investors has prompting Mynt Inc.’s domestic lead underwriter to seek a larger allocation for Filipino investors in the GCash operator’s initial public offering (IPO).
BDO Capital & Investment Corp. President Eduardo Francisco said demand from major local institutions, including the Government Service Insurance System and Social Security System, had exceeded levels seen in previous domestic IPOs.
“We will ask for a reallocation to give more to our domestic investors,” Francisco told reporters late on Tuesday.
“I’m very happy because it is a signal that Filipinos are going to invest more. I’m hopeful that this will do well, and hopefully there will be a spillover effect [on] other stocks,” he added.
Mynt shares are being offered a P6.60 per with the base offering covering 8.03 billion shares — 1.61 billion primary shares and 6.42 billion secondary shares — with an overallotment option of up to 1.20 billion additional secondary shares.
The base offer is expected to generate about P53 billion, which could rise to roughly P60.9 billion if the overallotment option is fully exercised.
Mynt is set to receive about P10.6 billion in gross proceeds from the primary offering, which it plans to use for expansion, CreditTech growth, product innovation and general corporate requirements.
The fintech’s upcoming IPO has stirred up strong local demand as the offering would give Filipino investors an opportunity to own shares in the company while its existing strategic shareholders remain invested in its growth.
Mynt Chief Financial Officer Evelyn Ng said Globe Telecom Inc., Ayala Corp. and MUFG remained committed to the company and its growth prospects.
“Our strategic shareholders, including Globe, Ayala and MUFG, remain very much invested in the company and continue to believe strongly in the company’s growth prospects,” she said.
Mynt President Martha Sazon, meanwhile, highlighted the company’s role in expanding financial inclusion, noting that more than 90 percent of its user base comes from lower-income segments.
“This is a market that we are able to penetrate and serve, and we continue to nurture and care for. But again, the job is not yet done. There is more to serve,” she said.
Mynt’s IPO offer period runs until noon on Oct. 12, with the company scheduled to make its debut on the Philippine Stock Exchange on Oct. 20 under the ticker symbol GCASH.
