In a board meeting, Mynt slashed the par value of its common shares from P1 to P0.03. Doing so increases the number of shares from 2.1 billion to over 71.6 billion, while keeping the company’s value intact.
Despite the change, Mynt’s authorized capital stock will remain at P2.15 billion.
“This move was likely done in preparation for the GCash IPO,” Alfred Benjamin R. Garcia, research head at AP Securities, told InsiderPH.
“Reducing the stock’s par value by 33.3 percent would allow the company to price the offer at a lower price, which can make it more palatable for retail investors,” he added.
Stock splits by private firms are a classic signal that a company is pressing for a public listing.
The planned changes were disclosed by GCash’s major shareholders Globe Telecom and Ayala Corp. The company is also backed by China’s Ant Group, Japanese corporate giants Mitsubishi UFJ Financial Group Inc. and Mitsubishi Corp., and several private equity investors.
Globe chief financial officer Juan Carlo C. Puno said during their stockholders’ meeting last April they’re keeping the GCash IPO push button ready for a Philippine listing in 2025 or 2026.
GCash, which was valued by its Japanese investors at $5 billion in 2024, is targeting a valuation of at least $8 billion, InsiderPH reported last January.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
