MYNT, INC., the operator of mobile wallet GCash, made its stock market debut on Tuesday after completing the largest-ever initial public offering (IPO) in the Philippines.
President Ferdinand R. Marcos, Jr. said Mynt’s listing on the stock exchange is a “significant achievement” as it shows world-class innovation can be developed in the country.
“The timing of this listing is especially meaningful, as our stock market needs renewed investor interest and broader participation,” he said in a speech at the listing ceremony at the Philippine Stock Exchange (PSE) Tower in Taguig City.
“We recognize that investors have become more cautious and that attracting fresh capital remains a challenge. But Mynt’s initial public offering gives us reason for optimism,” he added.
The President said the strong investor interest in Mynt’s IPO is proof of the continued confidence in Filipino businesses.
“We will continue to pursue reforms that strengthen investor confidence and support the development of our capital market,” he said.
Mynt is the first company to debut on the PSE this year.
Mynt sold 8.03 billion shares at P6.60 apiece in its IPO. The exercise of an overallotment option increased the deal size to P60.9 billion from P53 billion, Reuters reported. This surpassed Monde Nissin Corp.’s P55.89-billion record IPO in 2021.
“It is a record and, more importantly, a statement of confidence in Mynt, in the Philippine economy and in the strength of our capital market,” PSE President and Chief Executive Officer (CEO) Ramon S. Monzon said.
Mr. Monzon said the Mynt listing could help encourage more companies to tap the local capital market for funding, while giving investors additional opportunities to participate in corporate growth.
“The exchange regards this offering as a significant catalyst for the Philippine equities market. By renewing the confidence of domestic and international investors, it demonstrates the value that listing on the exchange offers companies that decide to list,” he said.
Mynt President and CEO Martha M. Sazon said the public listing would create more opportunities for the company to reach unbanked and underserved Filipinos as well as expand its social impact.
“Becoming a public company is not the finish line. The opportunity ahead is about how much more we can make possible for every Filipino,” she said.
“It opens up more ways for us to reach those who are still unbanked and underserved, bring world-class experiences to our country, and create more meaningful impact and with this comes greater responsibility to deliver on the trust placed in us,” Ms. Sazon added.
FLAT DEBUT
Shares of Mynt, which trades under the ticker symbol GCASH, closed Tuesday’s session at P6.60, matching its IPO offer price, after climbing to an intraday high of P6.76.
This reflected the overall flat performance of the stock market. The Philippine Stock Exchange index (PSEi) inched up by 0.14% or 8.27 points to close at 5,806.17, while the broader all shares index went up by 0.02% or 0.70 points to 3,234.18.
“The pullback after reaching a high of P6.76 reflects immediate profit taking, possibly due to investors’ cautiousness. Given the macroeconomic backdrop which is clouded with downside risks, investors are not willing to stay for the long run,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
Mr. Tantiangco said investors are waiting to see Mynt’s third-quarter earnings report. “Until then, general market sentiment, which is mostly macroeconomic driven right now, may affect the stock’s price performance,” he said.
Globalinks Securities and Stocks, Inc.’s Head of Sales Trading Toby Allan C. Arce said Mynt’s share price would increasingly depend on its ability to meet growth expectations and deliver earnings.
“The intraday move shows that there was initial buying interest, but the inability to sustain the premium suggests that supply emerged as the session progressed. Closing at the IPO price is still preferable to immediately breaking below it, but I would not interpret the P6.60 close by itself as evidence of strong aftermarket support,” he said via Viber.
“Now that the IPO is completed, the investment story shifts from anticipation surrounding the listing toward execution and earnings delivery.”
Mynt said its IPO drew strong demand from institutional investors, with both the institutional and Philippine trading participant tranches oversubscribed.
About 80% of its workforce also became shareholders, while more than 140,000 retail investors placed orders worth nearly P1.1 billion through GStocks PH, the stock trading platform available on the GCash app.
JPMorgan, which served as joint global coordinator and joint bookrunner for the offering, said the IPO showed that Philippine digital companies could attract backing from both local and foreign investors.
“This is a significant milestone for the Philippines. It demonstrates that a high-quality Philippine digital business can attract strong global and domestic investor support while expanding investment opportunities in the country,” JPMorgan Philippines Senior Country Officer Carlos Ma. G. Mendoza said in a statement.
The Mynt offering attracted both domestic and foreign cornerstone investors. Local investors included ATRAM Trust Corp., BPI Asset Management and Trust Corp., China Bank Capital Corp., Metropolitan Bank & Trust Co.’s Trust Banking Group, Philequity Management, Inc., and RCBC Capital Corp.
Foreign cornerstone investors included International Finance Corp., HSBC Global Asset Management (UK) Ltd., Amundsen Investment Management, FIL Investment Management (Hong Kong) Ltd., and funds and separately managed accounts managed by investment management subsidiaries of BlackRock, Inc.
Mynt had earlier said Albizia Capital Pte. Ltd., Amundsen Investment Management, and HSBC Global Asset Management were making their first cornerstone investment commitments in the Philippines. It also said Ninety One North America, Inc. and Ninety One UK Ltd. were participating as cornerstone investors in Southeast Asia for the first time. — Erika Mae P. Sinaking and Alexandria Grace C. Magno