GCash prices Philippines’ biggest-ever IPO at P6.60 per share

Guia Abogado/Rappler

The IPO now moves to its October 6 to 12 public offer period, when retail investors will be able to subscribe to shares at the P6.60 price

AT A GLANCE

• Mynt has set its IPO price at P6.60 per share, valuing the company at approximately P442 billion ahead of its stock market debut.
• The final price is below the initial maximum of P10 per share, and the IPO could raise up to P60.9 billion, potentially making it the largest in Philippine history.
• The base offering includes up to 8.03 billion shares, with about 80% being sold by existing shareholders, meaning most proceeds will not contribute fresh capital to GCash.

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MANILA, Philippines – GCash parent Mynt has set its final initial public offering (IPO) price at P6.60 per share, putting a price tag of roughly P442 billion on the fintech company ahead of its stock market debut.

The final price – set on Thursday, October 1 but disclosed on the Philippine Stock Exchange on Friday, October 2 – is below the maximum P10-per-share price Mynt initially indicated in its prospectus. The roughly P442-billion valuation is based on Mynt’s approximately 66.9 billion shares outstanding after the offer, multiplied at the final offer price. At the earlier P10 ceiling, the company would have been valued at about P669 billion.

At P6.60, Mynt’s base offering of up to 8.03 billion shares would be worth around P53 billion. If its 1.20-billion share overallotment option is fully exercised, the IPO could raise as much as P60.9 billion, still putting it on track to become the largest IPO in Philippine history, ahead of the previous record held by Monde Nissin, whose 2021 listing raised about P55.89 billion including primary and secondary shares.

The P6.60 price also matches the level previously indicated by several of Mynt’s cornerstone investors. More than 20 local and international institutions, including funds managed by BlackRock, Capital Research and Management Company, T. Rowe Price, and the World Bank Group’s International Finance Corporation, have committed around P36.5 billion to the offering.

Mynt’s base offer consists of up to 1.61 billion newly issued shares and another 6.42 billion shares being sold by existing shareholders, alongside an overallotment option covering as many as 1.20 billion more shares. (READ: For GCash’s early private equity backers, record IPO will be ultimate payday)

In other words, roughly 80% of the base shares on offer are being sold by existing shareholders, meaning most of the proceeds from the share sale will not go to GCash as fresh capital that it can use to fund its business, but instead to investors cashing out part of their stakes.

The IPO now moves to its October 6 to 12 public offer period, when retail investors will be able to subscribe to shares at the P6.60 price. Mynt is targeting an October 20 listing on the Philippine Stock Exchange under the ticker symbol GCASH. – Rappler.com