GCash IPO seen boosting MSME market access — DTI

The Department of Trade and Industry (DTI) said the initial public offering (IPO) of GCash parent Mynt Inc. could help micro, small and medium enterprises (MSMEs) expand their market reach and grow their businesses.

The Philippine Stock Exchange (PSE) on Friday, Sept. 18, approved Mynt’s listing application covering up to 8.03 billion primary and secondary common shares, with an overallotment option of up to 1.20 billion secondary common shares.

Trade Secretary Cristina Roque said digital payment platforms such as GCash could make it easier for MSMEs to sell their products, particularly through e-commerce platforms, and reach customers in far-flung areas.

“Of course, companies like GCash and digital payments will really help MSMEs grow, as it will become easy for them to sell their products, especially on e-commerce platforms. Magiging madali na for them ang ma-access or ma-penetrate ang far-flung areas. If they use these digital payments, it’s easier for MSMEs to transact,” Roque said.

“We are really pushing for people to do digital payments, especially with the DEFA (Digital Economy Framework Agreement),” she added.

Set for signing at the 49th ASEAN Summit in November, the DEFA will establish the world’s first region-wide digital trade agreement, streamlining cross-border payments, data flows, and intellectual property protection across all ASEAN Member States.

“With DEFA, we provide a single, streamlined set of rules to access regional markets, secure digital payments, and protect intellectual property,” Roque said.

The scheduled offering has a maximum indicative price of P10 per share, with the IPO expected to involve up to P92.3 billion worth of shares, including primary shares issued by Mynt and secondary shares being sold by an existing shareholder.

The final IPO price will be determined through the book-building process, with the offer price potentially reduced to P8.50 or P7.50 per share.

Under the terms approved by the PSE, Mynt will offer up to 1.61 billion primary shares and 6.42 billion secondary shares, with an overallotment option covering up to 1.20 billion additional secondary shares.

The shares will be listed on the PSE Main Board under the trading symbol “GCASH.” The offer period is set for Oct. 6 to 12, while the final offer price is expected to be determined on Oct. 1 following the book-building exercise.

The tentative listing date is Oct. 20.

PSE President and Chief Executive Officer Ramon S. Monzon said the offering is expected to become the largest public offering in the Exchange’s history. He added that the PSE hopes the landmark transaction will encourage more fintech and digital economy companies to raise capital through the equities market. —LDF, GMA News