GStocks PH boosts retail access to San Miguel share offering

Insider Spotlight

• Filipino retail investors accessed San Miguel Corp.’s P30-billion preferred share offering through GStocks PH in the GCash app
• Demand on the platform exceeded AB Capital Securities Inc.’s initial allocation across all three preferred share series
• The shares offered annual dividend rates ranging from 8.0401 percent to 8.6483 percent
  
  
  
  

Filipinos gained another digital route to owning shares in major Philippine companies as GStocks PH opened access to San Miguel Corp.’s recent P30-billion preferred share offering.

The trading platform, offered by AB Capital Securities Inc. through the GCash app, allowed retail investors to subscribe to SMC preferred shares without needing a bank account.

Digital investments

Digital investment platforms are lowering some of the traditional barriers to participating in Philippine capital markets, including the need to coordinate separately with a physical broker for share offerings.

SMC offered three preferred share series priced at P75 apiece. SMC2V carried an annual dividend rate of 8.0401 percent, SMC2W offered 8.3570 percent, while SMC2X had the highest rate at 8.6483 percent.

Beyond conventional savings products

Demand exceeded AB Capital Securities’ initial allocation for each series on GStocks PH. SMC2V was oversubscribed by 3.1 times, SMC2W by 1.3 times and SMC2X by 1.7 times, according to information provided by GCash.

The demand indicates retail investors on the platform were seeking investment opportunities beyond conventional savings products, while providing another example of how digital channels can broaden access to securities offerings.

Subscription meter

GStocks PH’s digital initial public offering and follow-on offering subscription feature gives investors visibility into available broker shares during an offering.

For the SMC transaction, the platform distributed AB Capital Securities’ initial allotted shares in real time following order confirmation. Allocations were guaranteed on a first-come, first-served basis while the broker’s allotted inventory remained available. A subscription meter also allowed users to monitor availability.

Ramon S. Ang

 Chair and CEO, San Miguel Corp.  

Expanding access to financial tools

Even after the broker’s initial allotment sold out, investors could continue submitting orders digitally through GStocks PH and check their final allocation in the GCash app after the offer period.

Fully verified GCash users can access GStocks PH through the app’s Invest tab and open an account with AB Capital Securities. The service does not require users to have a bank account.

GCash said it remains focused on expanding accessible financial tools as digital investing develops, giving more Filipinos ways to invest, diversify their portfolios and participate in corporate share offerings. —Vanessa Hidalgo | Ed: Corrie S. Narisma