Last Wednesday, June 17, the much-awaited news came: Globe Telecom Inc. (trading symbol: GLO) disclosed to the Philippine Stock Exchange (PSE) that its board approved the proposed initial public offering (IPO) — and listing — of the outstanding common shares of its affiliate, Mynt Inc. (Mynt), better known as the parent company of GCash.
The offering will consist of both primary and secondary shares representing at least 12% of Mynt’s total outstanding post-IPO capital stock. Mynt’s common shares have a par value of P0.03 per share.
To recall, Mynt has executed several foundational adjustments to prepare its corporate architecture for public trading. Mynt executed an intensive stock split, reducing the share par value from P1 to P0.03 to multiply outstanding common shares and maximize retail liquidity.
The plan to allocate 12% of Mynt’s total outstanding shares fits within the adjusted public float rules issued by the Securities and Exchange Commission (SEC). Under these new rules, large issuers with expected market capitalization of P200 billion and above are mandated to have a minimum public ownership of as low as 12%.
The timing of Mynt’s IPO is yet to be determined. Obviously, this will be dictated by market conditions, which at present is turning more favorable considering the encouraging geopolitical and economic developments unfolding here and abroad.
