GCash up for largest public listing in Philippine history

“GCash has the potential to expand further as the e-wallet can dive into untapped markets to build up its reach.”

MANILA, Philippines — E-wallet pioneer GCash has strengthened its case to make the largest listing in Philippine history now that its valuation is up to $5 billion after welcoming fresh investments from the Zobels and the biggest Japanese bank.

Analysts polled by The STAR believe that GCash’s parent Globe Fintech Innovations Inc. (Mynt) is close to going public, following the company’s latest funding round where it picked up a new financier in Mitsubishi UFJ Financial Group (MUFG), the largest banking network in Japan.

Mynt also received fresh capital from Ayala Corp. through its subsidiary AC Ventures Holdings Inc. (ACV), with the Zobels growing more confident in the future of GCash.

The entry of new investments raised the valuation of GCash to $5 billion, more than double the previous worth of $2 billion.

Mynt booked a P6.7-billion profit in end-2023, painting a picture of how financially viable GCash is as a business.

China Bank Capital Corp. managing director Juan Paolo Colet said Mynt could be on its way to filing the biggest initial public offering (IPO) in the Philippines. That is, if Mynt proceeds to list in the country.

Colet said the new investments from ACV and MUFG could inspire Mynt to list GCash abroad, particularly in a market where financial technology is booming.

“The expectation is that the IPO will be priced higher than the latest valuation of $5 billion, (and) that could potentially make it the largest IPO in the Philippines, assuming Mynt decides to list in the local market,” Colet said.

“However, the higher valuation bolsters the view that it might list in a major stock market abroad where there is better liquidity and appreciation for high-growth fintech companies,” he added.

Regina Capital Development Corp. head of sales Luis Limlingan said GCash could deploy its new funds to explore expansion opportunities and improve customer experience.

He added that the e-wallet could maximize the entry of MUFG to cement its grip on the fintech industry.

Limlingan also sees the additional investments as a step toward going public.

With its war chest stronger than ever, Mynt can focus on monitoring the economic landscape to hit the right timing for an IPO filing.

“Globe, a significant player in the fintech segment, may signal new market opportunities through operational innovations and a focus on customer experience,” Limlingan said.

“With the potential of positive digestibility by the investing public, the impact of the macroeconomic landscape on GCash’s financial framework poses another angle to be monitored before they even go public,” he added.

In a statement, ACV said it has decided to expand its share in Mynt by eight percent on optimism that GCash will keep up its growth pace in the long run.

ACV will invest an estimated P22.9 billion to grow its stake in Mynt to 13 percent.

Ayala Corp. president and CEO Cezar Consing said GCash has the potential to expand further as the e-wallet can dive into untapped markets to build up its reach.

“We like the long-term growth prospects of Mynt. It is a clear leader in a fast-growing space and a key contributor to Philippine economic growth, (as it) enables underserved Filipino consumers and business segments to thrive,” Consing said.

GCash has teased about going public since 2023, with Globe Telecom Inc. president and CEO Ernest Cu believing that the e-wallet is ripe for an IPO.

However, GCash has yet to outline a timeline for its plan to become a public company, lamenting the need for market conditions to look up.

GCash, owned by Mynt, is the biggest finance app in the Philippines, offering a portfolio of financial ser-vices, from cash transfer to instant loans.