GCash chief unsure on IPO plan this year

MANILA, Philippines — E-wallet giant GCash is unlikely to cash in on the opportunity to go public this year.

GCash president and CEO Martha Sazon told The STAR that the company’s highly anticipated initial public offering (IPO) would probably not take place anymore this year.

“We don’t know when, but definitely we’re considering it,” she said in an interview.

GCash continues to wait for the best timing before it proceeds with the filing of what could be the largest IPO in the country.

The company was previously considering to launch its maiden share sale by end-2025.

It has also earlier expressed its intent to request from regulators an exemption from the 20-percent public float requirement for IPOs.

Last March, the Securities and Exchange Commission said that it has allowed, by way of exemptive relief, a lower initial public float of 15 percent, subject to strict criteria, following thorough discussions with the Philippine Stock Exchange (PSE).

The exemption is intended to make it easier for companies to decide on holding an IPO.

In an earlier report by The STAR, PSE president and CEO Ramon Monzon said GCash’s IPO could potentially be pushed back to next year following the delay in the IPO of Maynilad Water Services Inc.

GCash and Maynilad’s IPOs are among the high-profile and most anticipated listings this year.

Instead of its original target of July 17, Maynilad’s target listing date was previously adjusted to be no later than the end of October to accommodate robust potential demand from strategic cornerstone investors.

Sazon, however, said Maynilad’s adjustment of its IPO timetable is not a factor in GCash’s IPO decision this year.

“It’s really more of we’re preparing and we want to do it right. But the regulators and the government are very supportive,” Sazon said.

“It’s just that we’re making sure that when we finally list, we are ready. But we’re actively working on everything right now,” she said.

Last month, GCash parent Globe Fintech Innovations Inc. approved the proposed stock split reducing the par value of the company’s common shares, a move seen as preparatory to its IPO plan.

China Bank Capital Corp. managing director Juan Paolo Colet, for his part, said it is probably better for GCash to be patient until there is more clarity on the policy and regulatory direction for online gaming.

He said a large part of GCash’s revenue growth comes from payment services to digital gambling platforms.

“So there’s some worry that proposed restrictions on the industry could impact GCash’s performance,” Colet said.

“If they want to push through with an IPO notwithstanding that uncertainty, the company would have to show the strong growth prospects of their other products and services,” he said.

Nonetheless, Colet said that even if GCash opts to defer its listing to 2026, investors still have two major IPOs to look forward to this year – Hann Holdings Inc. and Maynilad.

“The success of these two deals would be a significant boost to our IPO market and could pave the way for more companies to list on the PSE,” Colet said.

Only one public listing has been conducted so far this year, that of petroleum company Top Line Business Development Corp. which raised P732.6 million from its IPO last April. 

Hann Holdings, the operator of Hann Casino Resort in Pampanga, could be the second IPO this year, which is currently targeted by September, to be followed by Maynilad’s IPO no later than the end of October.