SEC backs GCash IPO as capital market catalyst

Securities and Exchange Commission (SEC) Chairman Francis Lim has backed the upcoming initial public offering (IPO) of GCash operator Mynt Inc. as a potential catalyst for the country’s capital market.

“[We are] fervently hoping that GCash’s IPO will be a catalyst, especially for our capital market,” Lim said in a Wednesday statement.

The SEC earlier cleared Mynt’s P92.32-billion IPO, bringing the company behind GCash closer to its stock-market debut.

The approval also allows Mynt to use a 12 percent minimum public float, below the usual 15 percent requirement for listed companies, under new rules for issuers with exceptionally large expected market capitalizations.

Lim is the latest Philippine business leader to welcome the IPO. Trade Secretary Cristina Roque highlighted the broader economic role of digital payments, particularly for micro, small and medium enterprises (MSMEs).

“Companies like GCash and digital payments will really help MSMEs grow, as it will become easy for them to sell their products, especially on e-commerce platforms,” Roque said.

She said wider use of digital payments could also help MSMEs reach and transact with customers in far-flung areas, allowing smaller businesses to participate more actively in the digital economy.

Meanwhile, PSE President and Chief Executive Officer Ramon Monzon said he is “optimistic” that the listing will generate strong market activity and significantly increase the number of retail investors.

“I am optimistic that this debut will drive strong market activity ahead of Q4. We expect to see a significant uptick in new retail investors,” Monzon said in a media interview last week.

The PSE approved Mynt’s listing application on 18 September, covering up to 8.03 billion common shares, with an overallotment option for up to 1.20 billion additional secondary common shares.

The approval came less than two weeks after Mynt received a pre-effective letter from the SEC for its proposed IPO.

Mynt has set a maximum indicative price of P10 per share. If the overallotment option is fully exercised, the IPO could generate gross proceeds of up to P92.32 billion, potentially making it one of the largest IPOs in Philippine market history and surpassing Monde Nissin Corp.’s 2021 record offering of P55.89 billion.

The final offer price will be established through the book-building and price-discovery process. The public offering is scheduled from 6 to 12 October, with Mynt targeting a PSE listing on 20 October.

With subscriptions accessible through GStocks, the offering will provide existing GCash users and other individual investors an avenue to participate in the IPO.