Stage set for GCash’s record P92.3B IPO, October 20 listing eyed

Guia Abogado/Rappler

The shares will be offered from October 6 to 12, with Mynt targeting an October 20 debut on the Philippine Stock Exchange under the ticker GCASH

MANILA, Philippines – GCash has obtained clearance from the Securities and Exchange Commission (SEC) to pursue what will likely become the biggest initial public offering (IPO) in Philippine stock market history.

The IPO will be conducted by Mynt Inc., the parent company of GCash, for up to P92.32 billion. Under the latest timetable submitted to regulators, the shares will be offered from October 6 to 12, with Mynt targeting an October 20 debut on the Philippine Stock Exchange (PSE) under the ticker GCASH. 

While there is no final offer price yet, shares may be sold for as much as P10 apiece, giving the e-wallet giant an expected initial market capitalization of about P668.96 billion.

The base offer consists of up to 1.61 billion newly issued shares and another 6.42 billion shares being sold by an existing shareholder, alongside an overallotment option covering as many as 1.20 billion more shares.

While the entire transaction could reach P92.32 billion in gross proceeds, Mynt itself expects to receive only around P14.95 billion in net proceeds from the primary shares, which it plans to spend on “digital financial services growth, product development, and general corporate purposes,” according to the SEC. 

The SEC clearance brings GCash a step closer to listing, though Mynt still has to comply with remaining requirements, such as obtaining final approval of its listing application from the PSE.

The GCash IPO will demand an unusually large amount of investor capital from the Philippine market. For this reason, Mynt will also become the first company to benefit from the SEC’s lower minimum initial public float requirement available for exceptionally large issuers valued at at least P200 billion. The SEC allowed Mynt to sell shares equivalent to only 12% of its post-IPO capitalization, below the normal 15% minimum for large issuers.

If the offer proceeds at its maximum size, GCash would comfortably surpass the current Philippine IPO record held by Monde Nissin, whose 2021 listing raised about P55.89 billion including primary and secondary shares. – Rappler.com