By Alexandria Grace C. Magno and Ashley Erika O. Jose, Reporters
MYNT, Inc., the parent company of the group behind GCash, has secured commitments from more than 20 global and domestic cornerstone investors for its proposed initial public offering (IPO), enough to cover nearly all shares allocated to institutional investors.
The commitments remain subject to possible reallocation between tranches, final pricing, completion of the offer, and customary closing conditions, Mynt said in a statement on Thursday.
Mynt’s domestic cornerstone investors include ATRAM Trust Corp., BPI Asset Management and Trust Corp., China Bank Capital Corp., Metrobank Bank & Trust Company-Trust Banking Group, Philequity Management, Inc., and RCBC Capital Corp.
Its global cornerstone investors include International Finance Corp. (IFC), HSBC Global Asset Management (UK) Ltd., Amundsen Investment Management, FIL Investment Management (Hong Kong) Ltd., and funds and separately managed accounts handled by investment management subsidiaries of BlackRock, Inc.
Mynt also said Albizia Capital Pte. Ltd., Amundsen Investment Management, and HSBC Global Asset Management are making their first cornerstone investment commitments in the Philippines, while Ninety One North America, Inc. and Ninety One UK Ltd. are participating as cornerstone investors in Southeast Asia for the first time.
On Wednesday, IFC, the private-sector arm of the World Bank Group, disclosed a planned P4.4-billion investment in Mynt’s IPO as a cornerstone investor.
The investment, equivalent to about $70 million, would come from IFC’s own account through the purchase of Mynt common shares. The proposed investment, identified as “Project Hiraya,” is pending approval.
Mynt plans to offer up to 1.61 billion primary shares and 6.42 billion secondary shares, with an overallotment option of up to 1.20 billion secondary shares.
The final offer price is expected to be determined on Oct. 1 following the bookbuilding process.
The proposed offering remains subject to Securities and Exchange Commission registration requirements, Philippine Stock Exchange listing requirements, prevailing market conditions, final offer terms, and internal approvals and consents, Mynt said.
Analysts said the participation of major global funds reflects Mynt’s scale and exposure to digital financial services, but cautioned that the interest should not yet be taken as evidence of a broader return of foreign capital to Philippine equities.
DragonFi Securities Equity Research Analyst Jarrod Leighton M. Tin said GCash offers international investors exposure to the Philippine digital finance market through a company with a large domestic user base.
“GCash offers what few local names can: massive scale, a dominant market position, and direct exposure to the digitalization of a young, mobile-first population that is still underserved by traditional banks,” he said in a Viber message.
Mr. Tin said the interest appeared specific to Mynt rather than indicative of a broader shift in foreign investor appetite.
“For foreign flows into the PSE to pick up more broadly, we would likely need to see stronger macro and earnings catalysts. Until then, GCash stands out as a unique story, not a turning point for the market,” he said.
Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce likewise said Mynt presents an uncommon opportunity for international funds seeking exposure to Philippine financial technology (fintech).
He said the participation of global institutions shows that Philippine fintech companies can attract international capital, but added that it is too early to characterize this as a wider return of foreign investors.
“For now, I would characterize GCash as a significant positive test case for foreign appetite rather than evidence that foreign investors have broadly returned to the Philippine market,” Mr. Arce said in a Viber message.
Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said the offering comes as the Philippine capital market faces relatively low trading activity and a limited pipeline of new listings.
He said pricing would remain an important consideration for institutional investors under current market conditions.
“A successful GCash listing could serve as a catalyst to revive investor interest, improve market liquidity, and encourage other high-growth companies to tap the equity market,” Mr. Ravelas said.
