GCash IPO price set at P6.6/share
E-wallet giant GCash has priced its initial public offering at P6.6 per share, settling for a rate lower than initial expectations but would still set up the country’s largest market debut.
The e-wallet giant GCash has set its initial public offering (IPO) price at P6.6 per share, falling short of initial forecasts ranging between P7 and P10. This pricing puts the country's largest market debut at approximately P61 billion, significantly lower than the initial projection of up to P92.3 billion at P10 per share. Mynt Inc., GCash's parent company, will offer its shares to the public at P6.6, resulting in a discount from earlier expectations.
The primary sale will generate around P53 billion, while the overallotment option will contribute approximately P8 billion to the IPO. This decision to price at P6.6 is due to concerns raised by analysts, who believe that P10 may be too demanding given the current economic landscape, characterized by currency depreciation, rising inflation, and slower growth.
If Mynt had proceeded with P10, it would have valued itself at roughly P670 billion, or about $11 billion, surpassing its initial reported equity of $8 billion and resulting in a price-to-earnings ratio of 30 times. The shares will be made available to the public from October 6 to 12 and listed on the Philippine Stock Exchange main board on October 20.
Mynt has secured P36.5 billion in commitments from prominent investors such as BlackRock Inc., Capital Research and Management Co., and International Finance Corp. GCash is the leading financial technology service in the Philippines, boasting an active monthly user base of 41.5 million users, representing 56 percent of Filipino adults.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
