GCash Secures P36.5 Billion from Cornerstone Investors Ahead of IPO

MANILA, Philippines — E-wallet giant GCash is set to secure an immediate P36.5 billion in proceeds prior to its listing as institutional investors commit to participate as cornerstone investors in its Initial Public Offering (IPO). Mynt Inc., the parent company of GCash, has secured commitments from local and global investors to take part in its IPO, according to its preliminary red herring prospectus. These cornerstone investors will purchase up to 59.8 percent of the shares to be sold in the IPO, assuming the overallotment option is exercised. The P36.5 billion, or $581.3 million, from these investors will cover 40 percent of Mynt’s P92.3-billion target proceeds for the IPO. Among the cornerstone investors is multinational investor and New York Stock Exchange-listed BlackRock Inc., which manages a $15.3 trillion portfolio and holds stakes in major tech brands like Apple, Microsoft, and Nvidia. Los Angeles-based investor Capital Research and Management Co. and the World Bank’s private sector financing arm, the International Finance Corp., are also investing in Mynt. Locally, investment units of the country’s largest banks, including BPI Asset Management and Trust Co., China Bank Capital Corp., and Metropolitan Bank & Trust Co.’s Trust Banking Group, have committed to Mynt’s IPO. Mynt stated that cornerstone investors have agreed to participate in the offer at a price of no more than P6.60 per share, which is lower than the indicative range of P7 to P10. The final offer price is scheduled to be set on Oct. 1, with the IPO period running from Oct. 6 to 12. The shares are slated to list on the main board of the Philippine Stock Exchange on Oct. 20. Mynt president and CEO Martha Sazon highlighted that the commitments from large-scale investors like BlackRock underscore GCash's strength in financial technology. She also views this interest as a vote of confidence in GCash’s long-term viability. “We believe this reflects confidence in our position as the nation’s number one finance superapp, our track record of profitable growth and a significant market opportunity that lies ahead of us,” Sazon stated. The GCash IPO is poised to become the largest listing in Philippine history, aiming to raise as much as P92.3 billion.