GCash in no hurry for IPO, resets timetable

By Tyrone Jasper C. Piad

February 8, 2024 12:00:00

As investors anticipate the entry of GCash into the local exchange, its parent company said on Thursday it was still evaluating the market before launching an initial public offering (IPO) even after previously targeting a debut by the second half of 2024.

Tek Olaño, chief financial officer of GCash parent company Mynt, said in a virtual briefing that “no decisions have been made as of today.”

“There is really no hurry, for one thing, with the IPO. The company is comfortable. We have to do it when it is right for the company,” added Ernest Cu, president of the Globe Group where Mynt is a part of.

Oscar Reyes Jr., president and CEO of G-Xchange Inc., previously shared with the media they were hoping to go public by the second half of this year. G-Xchange Inc., a subsidiary of Mynt, operates GCash.

For now, Olaño said they were still on the wait-and-see mode, factoring in macroeconomic developments before making a debut.

“We’ve seen some capital market movements as of late both in the region and global markets. While these are improving signs, we continue to monitor global fiscal monetary and geopolitical developments to gauge the more opportune time for an IPO,” Olaño said.

Safe, secure alternative

On Wednesday, GCash also announced it has disbursed P118 billion worth of loans to 3.9 million borrowers via its suite of financing products.

These include Sakto Loans, which allow users to borrow as low as P100 up to P1,000. The small loan product is marketed as a safe and secure alternative to predatory informal lending.

It has also sold 16.3 million insurance policies to date. GCash earlier launched an insurance policy to protect users’ fund transfers and payments from potential scams.

Based on latest data, GCash has 6 million merchants and social sellers in its network.

This quarter, GCash is set to go live in the Middle East as it targets to capture a bigger chunk of the overseas Filipino worker market.

It is estimated there are 2 million Filipinos across the Middle East and North Africa. Data from the Bangko Sentral ng Pilipinas shows that the top sources of remittances are Saudi Arabia, United Arab Emirates and Qatar.

The popular e-wallet brand is now available in other countries like Japan, Australia, Italy, Canada, United States and the United Kingdom. INQ