The planned P92.3-billion initial public offering (IPO) of GCash operator Mynt Inc. could inject fresh momentum into the local stock market by potentially drawing investors back into equities and paving the way for more large-scale listings.

With Mynt poised to undertake the biggest fundraising exercise in the Philippine Stock Exchange (PSE), market watchers are looking to the blockbuster IPO as a potential catalyst for investor sentiment heading into the final months of the year.

Perking up the local market

Japhet Tantiangco, research manager at Philstocks Financial Inc., said Tuesday that the successful fundraising activities in the coming months could perk up the local market, with investors closely watching major primary market transactions such as Mynt’s listing.

“Investors are really looking towards this. Investors are really looking towards these IPOs. If they perform well as they get into the market, then there’s the possibility that they could revive investor sentiment, and they could invite more investor participation in the market,” Tantiangco said.

Strong reception for upcoming IPOs could provide a lift ahead of the seasonal December Santa Claus rally and encourage other companies to tap the equities market for capital.

Securities and Exchange Commission (SEC) chairman Francis Ed Lim said Mynt’s offering demonstrates the ability of the Philippine capital market to handle large fundraising exercises.

“An offering of this magnitude is a most welcome development. It demonstrates that the Philippine capital market has the capacity to absorb sizable equity transactions and mobilize investor demand at scale — sending a strong signal to other companies considering the capital markets as a means of raising capital and expanding their businesses,” Lim said.

Mynt, which operates the GCash e-wallet, plans to offer up to 9.23 billion common shares at an indicative price of as much as P10 apiece.

The offering consists of an initial tranche of 8.027 billion shares and another 1.2 billion secondary shares to cover an oversubscription option.

IPO period from 6-12 October

Mynt is targeting an IPO period from 6 to 12 October following final price setting on 1 October. Its shares are scheduled to debut on the PSE on 20 October under the ticker symbol “GCASH.”

The SEC earlier said it sees Mynt’s large customer base as an opportunity to broaden retail participation in equities.

Lim said Mynt’s “broad and diverse user base” gives the IPO “a unique opportunity to deepen retail participation and bring more Filipinos into the capital market as investors and shareholders, not merely as users of financial services.”