‘GCash IPO offers potential upside’

MANILA, Philippines — A huge potential upside is seen for investors participating in the initial public offering of GCash parent Mynt Inc., which is slated to be the largest in the country’s history at P60.9 billion.

Philstocks Financial Inc. has recommended subscribing to Mynt’s IPO with an initial target price of P9.10, up 37.89 percent from its offer price of P6.60.

“The target price is hinged on our 2026 EPS (earnings per share) forecast coupled with selected global peers’ average of 31.2 times,” Philstocks said.

Revenue growth is expected to average 13.2 percent from 2026 to 2030, while net income is expected to increase by an average of 14.24 percent, driven by revenue growth and improved operating efficiency.

“Growth in the succeeding years is hinged primarily on the re-acceleration of economic growth. Digital financial services may play a more vital role amid the expected increase in loan demand and interest towards investment products,” Philstocks said.

Further, it said the IPO, priced below the initially planned P8 to P10, may attract strong investor demand.

As for the risks, Philstocks said that with most proceeds going to selling shareholders, the IPO could be seen more as an exit strategy than a growth-pursuing activity.

“A further deterioration of economic growth may lead to a slowdown in the use of GCash’s services,” it said.

At P6.60 per share and assuming overallotment options are exercised, Mynt’s total gross proceeds for the IPO could reach up to P60.93 billion.

The offering commenced yesterday and will run until Oct. 12.

GCash said the IPO shares would be available directly in the app through GStocks PH, powered by AB Capital Securities Inc.

The minimum order is 100 shares, or P660 at the offer price, with no maximum order limit and subject to share availability.