GCash’s post-listing price drop stirs mixed views
GCash’s listing success should be measured by its ability to expand the business and unlock value, rather than by its share price performance, according to analysts.
GCash's successful initial public offering (IPO) is not solely determined by its share price performance, according to analysts. In a blog post, US-based analyst Eric Jurado stated that investors should focus on GCash's long-term business expansion and unlocking of value, rather than its stock price. Jurado highlighted that GCash leads financial technology in the Philippines, boasting a user base of 41.5 million monthly and generating P10.82 billion in profit and P43.27 billion in revenue during the first half of the year.
Jurado emphasized that a falling share price can present opportunities for investors to purchase at a lower cost, and questioned if GCash's initial pricing might have been overly optimistic. However, some analysts, such as F. Yap Securities Inc., took a more negative stance on the price drop, claiming that GCash failed to attract new investors they anticipated.
F. Yap Securities noted that the IPO price was 34 percent below the ceiling and the offering did not succeed in sustaining demand. They further suggested that watching whether GCash can maintain its offer price once early stabilization subsides would be crucial, as a slide below it may dampen interest in the IPO pipeline that the Philippine Stock Exchange (PSE) hopes MYNT will unlock.
As of yesterday, GCash's parent company, Mynt Inc., was the most actively traded stock with its share price at P6.27 apiece.
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.
