GCash IPO expanding MSME reach

The Department of Trade and Industry (DTI) sees wider use of digital payments as a way for micro, small and medium enterprises (MSMEs) to reach customers beyond their local markets, with the planned initial public offering (IPO) of GCash parent Mynt Inc. highlighting the expanding role of digital finance in commerce.

“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,” Trade Secretary Cristina Roque said at the sidelines of an expo in Taguig City.

“It will be easier for them to access or penetrate far-flung areas. If they use these digital payments, it’s easier for MSMEs to transact,” she added.

Roque’s comments came after the Philippine Stock Exchange approved Mynt’s application to list its shares on the Main Board, paving the way for GCash to enter the local stock market.

Mynt will offer up to 1.61 billion primary shares and 6.42 billion secondary shares, with an overallotment option of up to 1.20 billion additional secondary shares.

The offering has a maximum indicative price of P10 per share, putting its potential value at about P92.3 billion — surpassing that of current record holder Monde Nissin’s P55.89 billion 2021 debut.

The final offer price will be determined through book-building. The IPO is scheduled to run from 6 to 12 October, with Mynt targeting a listing on 20 October under the ticker “GCASH.”

The planned listing would come as GCash continues to serve a large consumer base. About 40 million users were being rallied ahead of the IPO.

Roque also said the DTI is pushing digital payments as the Philippines prepares for the Digital Economy Framework Agreement (DEFA), which is scheduled to be signed at the 49th ASEAN Summit in November.

“We are really pushing for people to do digital payments, especially with the DEFA,” Roque said.

“And with DEFA, we provide a single, streamlined set of rules to access regional markets, secure digital payments, and protect intellectual property,” Roque said.

The agreement is intended to establish a common framework for digital trade among ASEAN economies, including rules covering cross-border payments, data flows, and intellectual property protection.

For Mynt, the IPO’s primary proceeds are expected to be used for the expansion of digital financial services, product development and general corporate purposes. The Securities and Exchange Commission said about P14.95 billion in net proceeds is expected from the primary offer.