Globe Fintech Innovations Inc. (Mynt), the parent company of GCash, is in no rush to undertake an initial public offering (IPO) having already secured investments of $786 million from Mitsubishi UFJ Financial Group (MUFG) to help fuel its growth.
Martha Sazon, president and chief executive, told reporters the investment further strengthens GCash’s ability and position for an IPO.
The investments of Ayala and MUFG brought the valuation of GCash to $5 billion, more than double its 2021 valuation of only $2 billion.
This development helps solidify Mynt’s position as lead fintech player in the Philippines and signals ambitious plans for future growth and innovation.
Ayala subsidiary AC Ventures Holdings Inc., will expand its stake in Mynt from 8 percent to 13 percent. MUFG Bank Ltd. will acquire 8 percent.
Key Mynth shareholders include Globe Telecom and the Ant Group, holding 35 percent and 34 percent, respectively.
“We believe that GCash is IPO-ready and could attract interest from all types of investors wherever the stock exchange we decide to list in. However, our view on timing the IPO remains the same,” Sazon said.
He explained the timing is tied to “improvements in market conditions” and that Mynth continues to monitor external trends and” to ensure we can unlock the fair value of the company.”
Globe’s share in Mynt’s equity earnings in the first half surged to P2.1 billion that accounted for 12 percent of Globe’s pre-tax net income versus only 5 percent the previous year.
Mynt reported net income of P6.7 billion in 2023.
