GCash operator Mynt Inc. has fixed its initial public offering (IPO) price at P6.60 per share, valuing the transaction at as much as P60.93 billion if its overallotment option were fully exercised.
On Friday, the Philippine Stocks Exchange (PSE) disclosed that Mynt will offer 8.03 billion common shares – about P53 billion at the final price.
The deal also includes an overallotment option of up to 1.2 billion secondary common shares valued at P7.95 billion.
The IPO remains subject to the conditions imposed by the Securities and Exchange Commission (SEC) and PSE. These include the SEC’s issuance of a permit to sell.
‘We believe the final price and allocation provide a strong foundation for Mynt’s next chapter and for creating long-term value for all our shareholders, while continuing to advance our mission of Finance for All.’ said Evelyn Ng, chief financial officer of Mynt.
Room for gains
Analysts said the lower price could leave room for gains while allowing Mynt to proceed with its fundraising.
China Bank Capital Corp. managing director Juan Paolo Colet described P6.60 as a good price point for the IPO.
‘New investors get the benefit of future upside, selling shareholders get a fair exit valuation and the company itself raises fresh funds to fuel the next phase of its growth,’ Colet told the Inquirer.
Ron Acoba, chief investment strategist at Trading Edge, estimated that Mynt would trade at 20.4 times its projected 2026 earnings at the final offer price.
Acoba said this valuation was relatively cheap compared with the company’s annualized earnings-per-share growth rate of about 25 percent this year.
Assuming a similar growth pace in 2026, he estimated a target price of around P8 per share.
April Lynn Tan , chief equity strategist at COL Financial, earlier said investors should not automatically interpret a lower offer price as a warning sign about the company.
‘The market is really so weak, and if you want to raise capital, then you have to make the stock more attractive, so you price it at a cheaper price,’ Tan said.
Toby Allan Arce, head of sales trading at Globalinks Securities and Stocks Inc., called P6.60 a more balanced entry valuation rather than merely a discounted price.