GCash Operator Mynt Secures SEC Approval for Stock Split

The parent company of e-wallet GCash, Globe Fintech Innovations Inc. (Mynt), has received approval from the Securities and Exchange Commission (SEC) for a stock split.

This structural move is widely seen as a preparatory step for a potential Initial Public Offering (IPO).

In a regulatory filing on Tuesday, Ayala-led Globe Telecom Inc. confirmed the approval. The number of Mynt’s common shares has been increased to 71.66 billion from 2.15 billion.

Correspondingly, the par value per share was cut to PHP 0.03 from PHP 1, while the company’s authorised capital stock remains unchanged at PHP 2.15 billion.

Stock splits are a common step for private companies heading towards a public listing, as the move can make shares appear more affordable and appealing to retail investors.

Mynt President and CEO Martha Sazon previously told media that the restructuring “future-proofs for any capital raising opportunities, which could include an IPO”.

A potential market debut for GCash has been the subject of discussion.

According to industry insiders, the company was reportedly considering listing at a valuation of at least US$8 billion. However, the timeline for an IPO has reportedly been pushed back due to challenging market conditions.

The Philippine Stock Exchange index, for instance, has fallen over 9 per cent this year.

Source: Fintech News Philippines