It’s no different for GCash, the largest IPO in Philippine history, with early indications from market insiders pointing to huge demand for the more critical institutional investor portion of the deal.
This is the part of the IPO aimed at large global and domestic investors looking for a slice of the fintech actively used by over half of the Philippines’ adult population.
Institutions account for 70 percent of an IPO that could raise roughly P60.9 billion, or about $1 billion.
InsiderPH sources said demand from these big investors alone has reached several billion dollars as the price settled at P6.60 per share, below the initial P10 reference value.
This means the entire IPO would technically be sold out several times over even before the retail offer period kicks off on Tuesday.
Dealmakers also worked hard to bring in strong cornerstone names such as BlackRock, International Finance Corp. and Fidelity, alongside local institutions like ATRAM Trust Corp., BPI Asset Management and Trust Corp., China Bank Capital Corp., Metropolitan Bank & Trust Co. – Trust Banking Group, Philequity Management and RCBC Capital Corp.
Hedge funds also came in with significant demand but we’re told the bank gatekeepers were more selective with allocations given their tendency to take profits quickly. This leaves more shares for investors willing to stay for the longer haul.
“It’s good for the market,” one insider said.
New investors are taking positions as early backers cash out of GCash’s growth, including Bow Wave, which was among the investors that came in just as GCash parent Mynt neared unicorn status in early 2021 in the midst of the global health crisis.
Mynt is now worth $7.1 billion, so Bow Wave’s earliest investment could realize a return of as much as seven times, while Warburg and Insight Partners also achieved significant profit after entering when GCash was valued at about $2 billion.
Local investors will still get their turn, with 30 percent of the firm offer coursed through local brokerages and the Philippine Stock Exchange’s local small investor program during the Oct. 6 to 12 offer period, ahead of Mynt’s planned Oct. 20 market debut.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
