Sustained profitability of GCash IPO seen at lower starting price
The initial public offering (IPO) of GCash’s parent company is providing investors with a more attractive starting point following the company’s final pricing at P6.60 per share, while its sustained profitability provides an important basis for assessing its longer-term value, according to an investment analyst.
The IPO for GCash’s parent company, Mynt, offers investors a more attractive starting point with a lower final pricing of P6.60 per share, compared to the previously disclosed maximum offer price of P10. Analyst Eric Jurado, applying Charlie Munger’s investment principles, believes that Mynt's sustained profitability is crucial for assessing its long-term value.
The company’s profitability is measured by its return on equity (ROE), which ranged between 25.8% and 32.8% over the past four years, with an average ROE of 29.4%. This consistency in high ROE indicates that Mynt effectively uses shareholders' money to generate substantial earnings. The lower IPO price also provides a different starting valuation, but does not guarantee the shares are undervalued.
Mynt has a vast user base, with 41.5 million monthly active users as of June 2026, providing an extensive platform to expand its financial services. However, user growth alone will not sustain the company’s value; Mynt must convert its customer reach into recurring revenues and profits while managing risks like competition, credit, and regulatory challenges.
For Mynt shareholders, the focus shifts from whether GCash will list to whether the company can maintain profitability, grow earnings, and effectively reinvest capital to increase the business’s overall value.
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.
