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(Bloomberg) -- The company behind the Philippines’ top mobile wallet GCash is seeking a lower minimum public float of 10%-15% for its planned initial public offering, a top executive said.
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“What we are pushing is the fact that given the size of this IPO, 20% may be too high,” Globe Telecom Inc. President and CEO Ernest Cu said on Monday, referring to the Philippines’ minimum public float requirement for IPOs. Cu chairs Globe unit Mynt, the parent of GCash.
“I think a range between 10% and 15% is good,” Cu said in an interview with Bloomberg Television’s Annabelle Droulers and Rebecca Choong Wilkins. “It gives us that room to play with depending on what we see demand shaping up” to be, he said, adding, “there is quite a bit of interest from foreign investors in the issue.”
The company will need approval for its lower public float from the Philippines’ Securities and Exchange Commission. Its planned IPO comes as the local stock market is reeling from low liquidity and weak valuations, which wouldn’t bode well for a large offering like GCash’s.
A potential IPO may take place by the end of 2025, although the company is in no rush to go public, Cu said.
Bloomberg News earlier reported that the IPO could potentially raise $1 billion to $1.5 billion, citing people familiar with the matter. The company was also said to have picked banks to work on the share sale that could take place this year.
The Mynt chairman said he’s had discussions with “long-only funds” that are interested in bringing in two to three cornerstone investors for the IPO, including US, European and Japanese funds.
GCash, which has around 94 million users, saw its valuation rise to $5 billion during its last funding round when Japan’s Mitsubishi UFJ Financial Group Inc. took an 8% stake. Jack Ma-backed Ant Group is another key shareholder.
Ahead of the IPO, GCash President and CEO Martha Sazon said in January that the company is bolstering its lending and investment products as it diversifies from its main payments business.
Cu is set to step down in April as Globe’s chief executive, a position he has held since 2009. He will be replaced by former Airtel Nigeria CEO Carl Raymond Cruz. Cu will remain chair of Mynt.
Globe’s profit dropped 1% to 24.3 billion pesos ($425 million) last year. But revenue rose 2% to a record 165 billion pesos as growth in the corporate data segment offset a decline in the home broadband business.