The success of GCash parent Mynt Inc.’s blockbuster initial public offering (IPO) should not be judged by whether it fetches the maximum P10-per-share price, as the quality of investors and demand after listing may prove more important.
Capital market expert Jonathan Ravelas said the P10 maximum offer price in Mynt’s regulatory filing merely serves as a ceiling and should not be treated as the company’s target or final IPO price.
The final price will emerge from the bookbuilding process, taking into account investor demand, company fundamentals, comparable firms, market conditions and the size and structure of the offer.
‘The P10 is a ceiling, not a promise, and certainly not a measure of whether the IPO succeeds or fails,’ Ravelas said during the Kapihan sa Manila Bay media forum.
He said bookbuilding would determine the valuation investors are willing to accept and the appropriate clearing price.
More important, Ravelas said, is whether the offer draws investors that understand Mynt’s business and risks and can support liquidity once its shares begin trading.
Pricing below the P10 ceiling could even be healthy if it leaves room for long-term value creation, he added.
If completed, Mynt is expected to become the Philippines’ first listed fintech company.
The IPO would come after a weak stretch of new listings and continued delistings on the Philippine Stock Exchange, potentially testing investor appetite for digital-economy companies.
Mynt has said the offering would account for 12 percent to 13.8 percent of its post-IPO shares and include both primary and secondary shares.
Existing shareholders would retain about 88 percent following the base offer, or around 86.2 percent if the over-allotment option is fully exercised.
Primary shares would raise fresh capital for Mynt, while secondary shares would allow existing investors to partially monetize their holdings.
Beyond valuation, the proposed listing could also draw more retail investors into the equities market given GCash’s extensive consumer reach.
Scam Watch Pilipinas cofounder Jocel De Guzman, however, said the continued expansion of digital financial platforms must be matched by stronger consumer safeguards.
He cited stronger authentication, faster detection of suspicious activity, effective account controls and continuous consumer education as measures needed as fraud schemes evolve.
The Mynt offering could ultimately serve as a broader test of whether the Philippine capital market can support a new generation of fintech and digital-economy companies seeking long-term funding.