Trump tariffs threaten GCash IPO

But preparations still underway

MANILA, Philippines — E-wallet giant GCash’s plan to list at the Philippine Stock Exchange (PSE) has hit a snag, as it now awaits how the economy would react to the new tariffs imposed by US President Donald Trump.

Globe Telecom Inc. chief finance officer Juan Carlo Puno yesterday said the e-wallet would wait for the best timing before it proceeds with the filing of an initial public offering (IPO).

Puno said the global environment is troubled by uncertainty over the impact of the White House’s decision to slap heavier tariffs on trading partners, including the Philippines.

Trump has announced that the US is rocking international trade by hiking tariffs on all imports. The Philippines was hit with a 17-percent tax on its exports to the US, although this is one of the lowest in Southeast Asia.

Puno said this development imperils the interest in and valuation of GCash, as the e-wallet wants maximum value should it list its shares. As such, he said GCash is on a wait-and-see mode, assessing first how the tariffs would impact the economy.

“I think the ‘Liberation Day’ (tariffs) added a lot of uncertainty, but I think this uncertainty doesn’t stop us from preparing,” Puno said.

“The goal here is to get GCash to a point where it is push-button ready, so if the market opens up and if we find the window where the valuation and interest we get is appropriate and acceptable, then we will push that button to trigger the IPO,” he added.

The PSE is anticipating GCash to list on the main board. It even relaxed the minimum public float for IPOs above P5 billion to less than 20 percent as sought by the e-wallet.

GCash is poised to become the largest filing in Philippine history after picking up fresh funding from Japanese financier Mitsubishi UFJ Financial Group. With this, GCash has raised its worth to $5 billion, from $2 billion previously.

Globe president and CEO Carl Raymond Cruz said the tariffs may have inflicted a new round of risks to the capital market, but GCash remains committed to going public. He said GCash has what it takes to debut as the most successful IPO in PSE history.

“We want to ensure that the macroeconomic environment, when we do the IPO, will be conducive for this particular offering to be the most successful in the Philippine market,” Cruz said.

GCash delivered P3.8 billion in equity for Globe in 2024, up by 58 percent from P2.4 billion in 2023. The e-wallet accounted for 12 percent of the telco’s pre-tax profit.