GCash is preparing to launch what could become the largest initial public offering (IPO) in Philippine history, with a valuation that would place the fintech giant among the country’s top three financial institutions.
At the top end of the proposed price range, operator Mynt would be worth over $10 billion, challenging the No. 1 spot long held by Sy family-controlled BDO Unibank, the country’s largest lender by assets.
Record-breaking debut
Under terms first reported by Bloomberg, Mynt plans to sell up to 9.23 billion shares at as much as P10 apiece, representing 13.8 percent of its outstanding capital.
Bloomberg said the deal could raise P92.3 billion ($1.5 billion), eclipsing the roughly $1 billion raised by PSE record holder Monde Nissin.
GCash officials said they were unable to comment on the listing.
Even at a valuation of $8 billion (P490 billion), GCash would be larger than the Ty family’s Metropolitan Bank & Trust (P294 billion) and on par with Bank of the Philippine Islands (P510 billion), also controlled by the Ayala Group.
Betting on fintech growth
This premium reflects the vast growth potential of digital finance in the Philippines, where millions remain unbanked and fintech firms are racing to capture a larger share of the market.
“The earnings contribution and growth contribution of GCash over the last several quarters have definitely been there. The question now is, what about moving forward,” Ron Acoba, chief investment strategist at Trading Edge Consultancy, told InsiderPH.
“There are still many areas that GCash can monetize,” he added, pointing to the company’s recent decision to start charging fees for certain cash-in transactions.
He noted that many services on the platform remain free today, but users may eventually be willing to pay for them once they become part of their daily routines.
From wallet to financial super app
GCash, which started as a text-based money transfer service in 2004, saw explosive growth during the pandemic and now serves 94 million users, offering services ranging from payments and money transfers to savings, lending, investments, stock trading and insurance.
The planned listing marks a sharp leap from 2024, when Mynt was valued at about $5 billion after Japan’s MUFG Bank and Mitsubishi Corp. invested in the company.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
