GCash Parent Mynt Prices Philippine IPO at ₱6.60, Below Initial Ceiling

GCash operator Mynt has priced its Philippine initial public offering at ₱6.60 a share, according to a notice from the Philippine Stock Exchange reported by BusinessWorld. That is 34% below the ₱10 ceiling in its earlier prospectus. At the final price, the base offer of about 8.03 billion shares is worth approximately ₱53 billion ($900 million).

If an option to sell another 1.20 billion shares is fully exercised, the transaction could reach about ₱60.9 billion ($1.03 billion), according to BusinessWorld and Rappler. Rappler said that would exceed the roughly ₱55.9 billion raised in food maker Monde Nissin’s 2021 listing, including its primary and secondary shares. Mynt plans to open the public offer from October 6 to 12 and list under the ticker GCASH on October 20, subject to remaining requirements, according to Rappler and The Manila Times.

For prospective shareholders, the allocation of proceeds matters. BusinessWorld and Rappler report that about 1.61 billion shares in the base offer are newly issued, while roughly 6.42 billion are being sold by existing shareholders. Thus, approximately four-fifths of the base shares are secondary shares: their sale proceeds go to the selling shareholders, rather than to Mynt as new capital. The additional shares available through the overallotment option are also secondary shares.

“At P6.60, GCash/Mynt is less stretched than the original P10 range, but we wouldn’t call it cheap,”Jarrod Tin, DragonFi Securities research analyst

The final price implies a company value of roughly ₱442 billion ($7.5 billion), based on the expected share count after the offer, Rappler reported. More than 20 domestic and international cornerstone investors have committed about ₱36.5 billion ($620 million) to the offering, according to BusinessWorld and Rappler. Cornerstone investors agree to buy shares ahead of the public offer; BusinessWorld noted that their commitments remain subject to the offering’s closing conditions.

Analysts interviewed by The Manila Times differed in their assessment of the price. DragonFi Securities research analyst Jarrod Tin said, “At ₱6.60, GCash/Mynt is less stretched than the original ₱10 range, but we wouldn’t call it cheap.” He identified credit quality as a concern as Mynt expands unsecured lending. Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said investors were also weighing the company’s ability to earn revenue from services beyond payments, including lending, wealth management and insurance.

Mynt operates the GCash mobile wallet and a lending business, according to the company. Its proposed IPO remains subject to conditions set by Philippine regulators and the stock exchange, The Manila Times reported.