Globe Telecom said in a regulatory filing that unit Mynt, the firm behind GCash, has secured 16 percent of AB Capital. This is part of moves to expand financial services beyond payments, where GCash is the dominant player with over 90 million users in the Philippines.
This comes after it purchased an initial 7.5 percent stake in AB Capital for about P37.5 million, suggesting a P500 million valuation for the firm.
GCash has an existing partnership with AB Capital for GStocks, but the acquisition solidifies their strategic tie-up with real investments.
According to the filing, Mynt entered into a definitive agreement with AB Capital & Investment in late 2023 to "acquire up to a 50 percent equity stake in AB Capital Securities, Inc".
Long history
AB Capital has a long history in the stock brokerage industry, having operated since its establishment in the 1950s.
The firm is part of the AB Capital Group, which is led by executive chair Antonio Periquet, an independent director of Globe.
Its board reads like a Forbes rich list with prominent tycoons such as Lance Gokongwei, Enrique Razon Jr., Christopher Po, and Frank Gaisano as directors.
Big picture
GCash is the largest financial technology platform in the Philippines, currently valued at over $5 billion—making it the fourth-largest financial institution in the country.
It’s also one of the most profitable firms in the country, ending 2024 with a net income of P10.6 billion, nearly 60 percent higher than the previous year.
GCash is among the big-ticket firms preparing to list on the Philippine Stock Exchange. PSE president Ramon Monzon previously said the firm could launch its initial public offering at an $8 billion valuation, should regulators decide to lower the minimum public ownership requirement for new listings.
Stock investing complements GCash’s other offerings
GCash, mainly backed by the Ayala Group’s Globe Telecom and China’s Ant Group, is pushing deeper into allied financial services such as lending, insurance, and wealth management, including stock and crypto trading.
In 2024, GStocks grew its user base by 401 percent, though the company did not provide a detailed breakdown. As of August last year, it reported around 800,000 stock market accounts.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
