Payment giant Mynt boosts Philippine market hopes with IPO record

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A woman checks the stock price offer of Mynt, the parent company of GCash, at an office in Manila on Oct 19.

MANILA – The parent company of Philippine digital payments powerhouse GCash made its stock market debut on Oct 20 in Manila after raising almost US$1 billion (S$1.3 billion) in a record-breaking initial public offering.

Analysts said Mynt’s listing could significantly raise the fintech profile of the country, where more than 40% of the population remains without a traditional bank account.

GCash has more than 40 million monthly active users in the country and offers services including payments, credit, savings and bill management via its ubiquitous phone app.

Mynt’s shares opened 0.6% higher at 6.64 pesos (13 Singapore cents), from a listing price of 6.60 pesos.

Cristina Ulang, head of research at First Metro Investment Corporation (FMIC), said the listing signals a boost to the Philippine economy and stock market.

“This is a big IPO. In terms of our position in ASEAN or in the whole of (the) Asia fintech landscape, we are now going to be on the map,” Ulang said. “We used to be invisible.”

“GCash and Mynt are going to be the barometer of the Philippine digital economy... whether we are advancing, whether we are progressing, and becoming on par with our ASEAN peers,” she added.

GCash users can also trade stocks through GStocks PH, a service offered on the mobile wallet platform by AB Capital Securities.

Stock exchange president Ramon Monzon said about 140,725 GCash subscribers, many first-time investors, had used the app to pump about 1.1 billion peso into the IPO.

Philippine President Ferdinand Marcos, who attended the market opening on Oct 20, praised the access being offered to small shareholders, while acknowledging that attracting fresh capital to the country had been a challenge.

“The timing of this listing is especially meaningful, as our stock market needs renewed investor interest and broader participation,” Marcos said.

Mynt, a joint venture of Globe Telecom, Ayala and Alibaba’s Ant Group, said proceeds from the IPO – which raised US$960 million – would fund the growth of its digital financial services, product development and general corporate purposes.

The company in September said it had secured more than 20 domestic and foreign institutional investors for the offering, including Capital Research and Management Company, and HSBC Global Asset Management (UK) Limited. AFP