Global funds circle GCash IPO

Some of the world’s biggest investment names are circling Mynt Inc.’s blockbuster initial public offering (IPO), offering a rare shot of momentum for a Philippine stock market starved of major listings.

The GCash operator has drawn interest from the International Finance Corp., BlackRock, Capital Group and Schroders, according to Bloomberg, as it gears up for what is expected to be the largest IPO in Philippine history.

The institutions are reportedly looking to secure shares at around P6.50 apiece, below Mynt’s maximum offer price of P10, ahead of final pricing on 1 October.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., called the interest “a major vote of confidence not only in GCash but also in the long-term digital economy story of the Philippines.”

“The fact that the IPO is being priced below the maximum suggests management is prioritizing a successful and sustainable market debut over chasing valuation, which is a prudent move given current market conditions. More importantly, this IPO comes at a critical time for the Philippine capital market, which has struggled with low trading activity and a limited pipeline of listings,” Ravelas said.

Mynt plans to sell up to 13.8 percent of its post-IPO ownership. Its base offer covers 8.027 billion shares—1.61 billion primary and 6.42 billion secondary shares—equivalent to about 12 percent of its outstanding capital stock.

Another 1.2 billion secondary shares are available under an over-allotment option.

BDO Unibank Inc. president Ed Francisco, whose investment banking arm is a local underwriter, said Mynt has conducted roadshows involving more than 150 global investors, with allocations for strong hands and cornerstone investors being finalized.

The public offer will run from 6 to 12 October, followed by Mynt’s targeted Philippine Stock Exchange debut on 20 October under the ticker GCASH.

Morgan Stanley, J.P. Morgan and UBS are the joint global coordinators and joint bookrunners, while BPI Capital Corp. and BDO Capital are the domestic lead underwriters and joint bookrunners.