IPO ready: GCash parent Mynt secures SEC nod for stock split

GCash operator Globe Fintech Innovations Inc. (Mynt) has secured final approval from the Securities and Exchange Commission for its stock split, a key structural move seen as laying the groundwork for one of the country’s most anticipated initial public offerings.

The amendment boosts the number of Mynt’s common shares to 71.66 billion from just 2.1 billion, while cutting the par value from P1 to P0.03 and keeping its authorized capital stock unchanged at P2.15 billion, Globe said in a stock exchange filing on Tuesday. 

Stock splits by private firms are often viewed as precursors to IPOs, helping make shares appear more affordable and appealing to investors.

Mynt president and CEO Martha Sazon earlier told InsiderPH the restructuring “future-proofs for any capital raising opportunities, which could include an IPO.”

According to industry insiders, GCash was planning to list in the Philippines at a valuation of at least $8 billion; however, the timeline was eventually pushed back amid challenging market conditions.

The benchmark Philippine Stock Exchange index has slumped over 9 percent this year, closing at 5,933.76 on Monday.

—Edited by Miguel R. Camus