GCash IPO puts P669-B valuation to the test

Mynt Inc.’s blockbuster initial public offering is drawing heavyweight institutional demand, but its maximum P10 offer price could put the GCash operator’s roughly P669-billion valuation—and its ability to sustain rapid earnings growth—to the test.

More than 20 global and domestic cornerstone investors have committed to the IPO, virtually covering the entire 70-percent allocation for qualified institutional investors even before final pricing on 1 October.

Mynt is seeking to raise as much as P92.3 billion through the sale of up to 9.23 billion shares, including an over-allotment option, at a maximum of P10 apiece.

The shares are scheduled to list on the Philippine Stock Exchange on 20 October under the ticker “GCASH.”

Cornerstone investors include BlackRock subsidiaries, Capital Research, Fidelity, HSBC GAM, IFC, Ninety One, T. Rowe Price and Schroder, alongside major Philippine institutions.

“The cornerstone investor group comprises leading institutions who have indicated interest in participating in Mynt’s proposed IPO. We believe this reflects confidence in our position as the nation’s number one finance super app, our track record of profitable growth, and the significant market opportunity that lies ahead of us,” Mynt President and CEO Martha Sazon said on Friday.

But Eric Jurado, hedge fund manager for the SeA Focus Portfolio, said the investment case ultimately hinges on whether Mynt can continue turning GCash’s massive scale into earnings growth.

GCash had 41.5 million monthly active users as of June, while its platform serves 7.5 million active borrowers and has 17.9 million savings accounts, 9.2 million managed investment-fund accounts and around two million local stock-market accounts.

"That means execution matters. Competition matters. Credit quality matters. Regulation matters. And, perhaps most importantly, earnings growth matters… It is about whether one of the Philippines’ most successful digital platforms can continue turning its enormous user base into a long-term earnings-compounding machine," Jurado said.

At P10 per share and an expected 66.9 billion shares outstanding after the IPO, Jurado estimated Mynt would command an implied equity valuation of about P669 billion.

Mynt’s net profit surged from P6.38 billion in 2023 to P17.25 billion in 2025, while first-half of the year earnings rose 7.3 percent to P10.82 billion.

Jurado said the maximum offer price leaves investors heavily reliant on Mynt delivering future growth, with a lower IPO price providing more valuation cushion.

“The margin of safety becomes greater if the IPO price is below P7," he said.