GCash Operator Mynt Secures Approval for Record P92.3 Billion IPO

The Securities and Exchange Commission (SEC) of the Philippines has granted approval for Mynt Inc., the parent company of the popular digital wallet GCash, to proceed with an initial public offering (IPO) that could raise up to P92.32 billion (approximately USD 1.6 billion). This development positions Mynt to potentially set a record for the largest IPO in the country's history, surpassing the previous record of P55.89 billion held by Monde Nissin in 2021.

According to the SEC, Mynt's IPO will involve the offering of up to 66.9 billion common shares, with a minimum initial public float of 12 percent, which is lower than the standard 15 percent requirement. This adjustment is made possible under the SEC’s new regulations that allow for a reduced public float for companies with exceptionally large expected market capitalizations. Mynt's anticipated market capitalization at the time of listing is approximately P668.96 billion (around USD 12 billion), significantly exceeding the P200 billion threshold that qualifies for this exemption.

The IPO is scheduled to take place from October 6 to 12, with Mynt aiming for a listing on the Philippine Stock Exchange (PSE) on October 20 under the ticker symbol “GCASH.” The company plans to issue up to 1.61 billion newly issued shares, alongside 6.42 billion shares being sold by existing shareholders, and an overallotment option of up to 1.20 billion shares. If fully exercised, Mynt expects to net approximately P89.25 billion (USD 1.6 billion) from the offering.

Of the net proceeds, around P14.95 billion (USD 265 million) is earmarked for enhancing Mynt's digital financial services, product development, and general corporate purposes. This strategic move reflects Mynt's commitment to expanding its footprint in the rapidly growing digital finance sector in the Philippines.

Mynt's IPO marks a significant moment for the Philippine stock market, as it not only represents a substantial influx of capital but also showcases the growing investor interest in digital financial services. The approval from the SEC comes after a series of regulatory changes aimed at facilitating larger issuances in the market.

As Mynt prepares for its IPO, it has enlisted several prominent financial institutions to assist in the process. BPI Capital Corp. and BDO Capital & Investment Corp. will serve as domestic lead underwriters, while Jefferies Singapore Ltd., CLSA Ltd., and The Hongkong and Shanghai Banking Corp. Ltd. will act as international joint bookrunners. Additionally, Morgan Stanley & Co. International PLC, JP Morgan Securities PLC, and UBS AG Singapore Branch will function as joint global coordinators.

The anticipated IPO of Mynt underscores the increasing importance of digital finance in the Philippines, where GCash has become a household name, facilitating millions of transactions daily. The upcoming listing is expected to attract significant attention from both local and international investors, further solidifying the Philippines' position as a growing hub for fintech innovation.