GCash, a leading fintech firm in the Philippines, has hired banks including Citi C.N, Jefferies JEF.N, and UBS UBSG.S to work on a domestic initial public offering (IPO) that will raise up to $1.5 billion, according to three source with knowledge of the matter. If successful, it will be the largest IPO in the country's history.
Looking forward to 2025 or 2026
The IPO is expected to take place in the second half of 2025 or in 2026, depending on market conditions, according to two sources who declined to be named because the matter is still private.
If successful, it will surpass the $1 billion IPO of Monde Nissin MONDE.PS in 2021, which is currently the largest IPO in the Philippines.
In a statement on Friday, GCash said it had no substantive information to share about acquiring banks for the IPO. Globe Telecom GLO.PS, GCash's listed affiliate, told the Philippine Stock Exchange that GCash is "ready for an IPO when the time is right," but no final decision has been made yet.
Role of Large Banks
Bloomberg previously reported that GCash recruited HSBC HSBA.L, Jefferies, JPMorgan JPM.N, Morgan Stanley MS.N, and UBS for the IPO. Citi, HSBC, Jefferies, JPMorgan, Morgan Stanley, and UBS declined to comment.
Revival of the Southeast Asian IPO Market
GCash's IPO could provide a big boost to the Southeast Asian IPO market, where total IPO proceeds are down 43% to $3.28 billion in 2024 from $5.76 billion in 2023, according to LSEG data.
In the Philippines, IPO proceeds reached $234.1 million in 2024, up from $72.9 million last year, according to the same data.
Growth of GCash
GCash is proud to be the "number one finance app and largest cashless ecosystem" in the Philippines. Their app offers various services like sending money and paying bills.
In August last year, its parent company Globe Fintech Innovations Inc., also known as Mynt, announced that it had acquired investments from Ayala Corp AC.PS and Mitsubishi UFJ Financial Group 8306.T. As a result, the company's valuation reached $5 billion, more than doubling from the $2 billion valuation in 2021.
