Mynt draws global institutional interest ahead of IPO

From AB Capital's The Opening Bell: Three Moves

Event

Mynt is reportedly attracting interest from global institutions including International Finance Corporation (IFC), BlackRock, Capital Group and Schroders, with shares reportedly being sought at around P6.50, below the P10 maximum offer price.

View

We see the institutional demand as supportive of Mynt's initial public offering (IPO) visibility. Ahead of the IPO, the key read-through for Globe Telecom (GLO) is the valuation Mynt ultimately commands. GLO is Mynt's largest shareholder with a 34% stake and is not selling into the IPO, while Mynt already contributes around 28% of GLO's earnings. Strong institutional demand and a successful listing would provide a clearer market value for GLO's fintech exposure and potentially improve recognition of the stake.

Catalyst

Mynt is expected to finalize pricing on Oct. 1, ahead of the Oct. 6-12 offer period and Oct. 20 listing.

Action

We have an Outperform rating on GLO (P2,200/sh target). The telco remains supported by resilient core earnings, while the Mynt IPO provides a potential valuation catalyst and a more visible market value for GLO's fintech exposure.

Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.