GCash eyeing overseas listing

By Ashley Erika O. Jose, Reporter

ELECTRONIC WALLET giant GCash is considering listing overseas while it is taking a “wait-and-see” stance on its initial public offering (IPO) locally, a company official said.

“I think with listing overseas, it is a possibility. And again, when the right market conditions are in place,” GCash Chief Marketing Officer Neil Trinidad told reporters on Monday.

The company previously said it was planning an IPO but would wait for a more favorable market.

“GCash’s plan to possibly list overseas… could open the company to a broader pool of investors, particularly those who are more familiar with and eager to invest in emerging market fintech firms,” Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message.

Mr. Arce said a foreign listing such in Hong Kong or the US, could also possibly provide GCash with higher valuations due to its “positioning as a high-growth, high-tech company.”

“This is one of the most eagerly awaited IPOs in the country, but there is no particular reason for GCash to rush it. The market tide has started to turn in their favor so they can afford to wait some more for the best timing,” Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

Mr. Colet said it is no surprise that GCash is considering listing overseas considering that it would get a higher valuation abroad.

G-Xchange, Inc., which operates GCash, is a wholly owned subsidiary of Globe Fintech Innovations, Inc. (Mynt).

In July, Mynt secured fresh investments from Ayala Corp. and Japan’s Mitsubishi UFJ Financial Group, more than doubling its valuation to $5 billion from $2 billion in the 2021 funding round.

For its planned IPO at the local bourse, Mr. Trinidad said the company is carefully evaluating market conditions.

“We are preparing for the eventual launch. Like any discussion on IPO before, we have always said that we are going to watch for the right market conditions to do it,” Mr. Trinidad said.

“By delaying the IPO, GCash may be attempting to time the market more strategically, waiting for more favorable conditions such as improved investor sentiment, economic stability, or better market valuations,” Globalinks Securities’ Mr. Arce said.

Mr. Arce said that GCash’s decision to go public would be very attractive to investors due to the e-wallet platform’s strong market position, wide user base, and its growth potential in the digital financial space.

GCash services are also available in 16 countries, including the United States, United Kingdom, United Arab Emirates, Italy, Australia, Canada, Germany, and other Asian countries.