More than a year after mobile e-wallet GCash expressed its desire for an initial public offering (IPO) in 2025, the Securities and Exchange Commission (SEC) has expressed optimism and hopes for a successful listing.
SEC on GCash IPO
While the commission is positive about GCash’s planned IPO, SEC Commissioner McJill Bryant Fernandez clarified that GCash has not yet formally submitted a request for an exemption from the 20% public float requirement.
While GCash has reportedly reached out to the Philippine Stock Exchange (PSE) regarding this matter, the commissioner shared that no official discussions have taken place with the SEC.
“From our end, we’re looking forward to this listing of GCash. At the end of the day we want a successful offer… Actually, we have not even conversed, formal or informal, about this. I am aware, well it’s in the news, that they reached out to the Philippine Stock Exchange (PSE). But on the SEC side, formally, we haven’t received any request from GCash.”
Atty. McJill Bryant Fernandez, Commissioner, Securities and Exchange Commission
Fernandez stated that lowering the 20% public float requirement would require an exemptive relief application. He then emphasized that aside from the yet-to-be received formal request from GCash, the Commission would need to assess market conditions and the size of the offering before making a decision.
GCash’s IPO Plans
At a press conference in early 2024, Oscar Reyes Jr., the president and CEO of G-Xchange, the operator of GCash, officially announced the company’s decision to move forward with an IPO. He highlighted that while GCash is fully prepared for the launch, the exact timing will depend on market conditions and overall investor sentiment.
Moreover, as per a Bloomberg report, Globe Telecom President and CEO Ernest Cu revealed that GCash is open to requesting a reduction of the public float requirement from 20% to 15% to 10% to facilitate the offering.
While no final decision has been made regarding the share sale of Globe Fintech Innovations, Inc., or Mynt, GCash is actively evaluating all available options.
The IPO is among the most anticipated in the Philippines, with the company reportedly targeting a valuation of at least $8 billion.
What is an IPO?
An IPO is the process by which a private company transitions into a publicly traded entity by offering shares to the public for the first time. This move allows companies to raise capital from investors, increase their market visibility, and expand operations
However, IPOs are subject to regulatory requirements, such as the public float rule, which dictates the minimum percentage of shares that must be available to public investors.
Recent GCash News
Recently, GCash announced its partnership with Circle, an open platform for programmable money, to integrate the $USDC stablecoin into its GCrypto wallets. This allows users to seamlessly receive, buy, store and transact with $USDC, providing a secure and convenient digital dollar option.
In addition, to promote $USDC adoption, GCrypto launched a $USDC raffle promo in early March, offering users a chance to win up to ₱1 million worth of $USDC by maintaining a balance in their wallets.
In late 2024, GCash and PDAX, in partnership with the Bureau of the Treasury, announced the launch of GBonds, enabling retail investors to easily purchase government-issued bonds through the mobile wallet as part of the country’s financial inclusion and digitalization efforts.
This article is published on BitPinas: GCash Moves Closer to IPO with SEC Optimistic on Public Listing
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