GCash Parent Mynt Secures PSE Approval for IPO

Fintech giant Mynt Inc., the parent company of GCash, has secured approval from the Philippine Stock Exchange Inc. (PSE) for its planned maiden listing. In an advisory on Friday, the PSE announced it has approved Mynt’s application for the listing of its common shares on the exchange’s Main Board, which includes shares to be offered through the company’s initial public offering (IPO). The local bourse operator said Mynt’s IPO, with an offer price of P10 apiece, is composed of the following: “The Exchange’s approval pertains solely to the conduct of the IPO and the listing of the company’s shares and remains subject to the company’s compliance with all post-approval conditions and requirements of the Exchange, the Securities and Exchange Commission, and other relevant regulatory authorities,” the PSE said. “Such approval is without prejudice to any subsequent action that the Exchange may take concerning the company’s compliance with applicable Exchange rules,” it added. The PSE nod on Mynt’s IPO came after the SEC approved the planned maiden listing early this month. https://www.gmanetwork.com/news/money/content/1001197/gcash-parent-mynt-s-p92-32-b-ipo-gets-sec-thumbs-up/story/ Mynt’s IPO offer period will run from October 6 to 12, in time for the issuance and listing on the Main Board of the PSE under the ticker “GCASH” on October 20, according to the latest timeline submitted to the Commission. “The Exchange will keep the investing public apprised of any material developments relating to the company’s IPO,” the PSE said. During the Kapihan sa Manila Bay media forum, capital market expert Jonathan Ravelas said investors should look beyond the headline maximum price and examine the valuation that ultimately emerges from the book-building process. “The P10 is a ceiling, not a promise, and certainly not a measure of whether the IPO succeeds or fails. Price discovery is precisely what book-building is for. The market will tell you where demand is, what valuation investors are prepared to accept, and ultimately where the appropriate clearing price should be,” Ravelas said. “What matters is the quality of that demand. You want an offer that is properly priced, supported by investors who understand the business and its risks, and capable of sustaining liquidity after listing. Pricing below the ceiling can actually be healthy if it leaves room for long-term value creation,” he added. Mynt had said its offer would represent 12% to 13.8% of its post-IPO shares and comprise both primary and secondary shares. Existing shareholders would retain about 88% after the base offer, or about 86.2% if the over-allotment option is fully exercised. Mynt said its proposed IPO would be more than a test of how investors value one of the country’s largest digital businesses as “it could also provide an indication of whether Philippine investors are ready to support a broader generation of fintech and digital-economy companies seeking long-term capital through the public market.” —AOL, GMA News