GCash parent prices IPO, could raise up to P60.9B

The adjusted IPO price for Mynt reflects market pressure, with analyst Jarrod Tin attributing the approximately 34 percent reduction from the P10 ceiling to a weak peso, inflation concerns, and the US-Iran conflict. While the P6.60 price is seen as more defensible than the original range, it is not considered cheap. This pricing decision occurs within a Philippine stock market that has seen a 71 percent decline in funds raised through share sales this year compared to the same period last year, according to LSEG data.

Mynt's valuation at 24.6 times trailing earnings and 47.3 percent revenue growth indicates that investors are assessing both its current market position and its expansion into new financial services. However, the company's increasing reliance on unsecured lending raises concerns about credit quality, with provisions already accounting for 44.1 percent of CreditTech revenue. This shift means the effectiveness of converting its user base into sustainable earnings through services like lending, wealth management, and insurance will be a critical test.

Beyond the pricing, investors are advised to monitor Mynt's public float, which at 12.06 percent to 13.86 percent remains below the 15 percent threshold for inclusion in the Philippine Stock Exchange index. The lock-up expiration around April 18, 2027, when about two-thirds of the company's shares could become eligible for sale, is another important consideration for market dynamics post-IPO.