MANILA — Ilonggos who regularly use GCash for sending money, paying bills, buying load and other everyday transactions may see more digital financial services in the future as the company moves closer to a massive initial public offering (IPO).
Mynt Inc., the operator of GCash, has secured the approval of the Securities and Exchange Commission (SEC) for an IPO that could raise as much as P92.32 billion, making it the first company to benefit from the regulator’s newly relaxed public-float rules for large issuers.
The SEC said its commission en banc approved the registration statement covering up to 66.9 billion common shares, subject to compliance with remaining requirements.
Mynt was also granted permission to have a minimum initial public float of 12 percent, below the previous 15-percent requirement, under SEC Memorandum Circular No. 11, Series of 2026.
The relaxed requirement applies to companies with exceptionally large expected market capitalization. Mynt expects an initial market capitalization of P668.96 billion, more than three times the P200-billion threshold set under the new rules.
For GCash users in Iloilo, Negros and other parts of Western Visayas, the development could be significant because the platform has become part of everyday financial transactions, particularly for money transfers, bill payments and other cashless services.
Analysts said the size of the offering made the lower public-float requirement necessary.
Ron Acoba, chief investment strategist at Trading Edge, said the market might not have been able to absorb an offering of the same size under the previous rules.
Without the reduction in the minimum public float, Mynt would have needed to sell about P133.79 billion worth of shares at P10 each, Acoba estimated.
Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said the IPO could boost confidence in the Philippine stock market’s ability to attract substantial capital from both local and foreign investors.
He said the offering could also bring in foreign investments, increase stock market trading activity and generate additional flows of foreign currency into the local economy.
Under the planned IPO, Mynt will offer up to 1.61 billion common shares through a primary offering, while a selling shareholder will offer up to 6.42 billion shares.
An overallotment option covering up to 1.20 billion additional shares is also included. The shares will be priced at a maximum of P10 each.
If the overallotment option is fully exercised, Mynt expects to net as much as P89.25 billion from the total offering.
About P14.95 billion of the net proceeds from the primary offer will be used for the expansion of its digital financial services, product development and general corporate purposes.
The offer period is scheduled for October 6 to 12, with Mynt targeting an October 20 debut on the Philippine Stock Exchange main board under the ticker symbol “GCASH.”
BPI Capital Corp. and BDO Capital & Investment Corp. will serve as domestic lead underwriters and joint bookrunners, while Jefferies Singapore Ltd., CLSA Ltd. and HSBC’s Singapore branch will act as international joint bookrunners.
Morgan Stanley & Co. International PLC, J.P. Morgan Securities plc and UBS AG Singapore Branch will serve as joint global coordinators and joint bookrunners.
For ordinary users, the IPO marks another major step in the growth of a platform that has increasingly become a part of daily financial life, including in communities where digital transactions provide an alternative to traveling to banks or payment centers./PN
