Globe Telecom Inc. indicated readiness for its much-anticipated initial public offering (IPO) of leading e-wallet GCash despite uncertainties in the local stock market driven by recent shifts in the global economy.
In a briefing on Tuesday, April 22, newly minted Globe President and Chief Executive Officer (CEO) Carl Cruz said the company is intent on listing GCash on the local bourse once the macroeconomic environment is conducive to making it “the most successful in the Philippine market.”
“What we’re doing is to make sure that all hands are on deck to ensure a successful IPO for GCash. Nothing has changed on that front. It will be push-button ready very, very soon,” said Cruz.
Globe Fintech Innovations Inc. (Mynt), which owns GCash, is seeking a valuation of $8 billion when it goes public. Mynt is a financial technology firm owned by Globe, Ayala Corp., and Ant Financial, an affiliate of Chinese conglomerate Alibaba Group.
GCash’s listing before the Philippine Stock Exchange (PSE) hinges on the Securities and Exchange Commission (SEC) ’s “exemptive relief” regarding the 20 percent minimum public float requirement for listed firms.
SEC earlier ruled that an initial public float of 15 float will be allowed “subject to strict criteria,” and provided that companies bridge the gap from the 20-percent standard within less than 24 months from the listing date.
GCash has been asking for an exemption from this rule over concerns that the PSE may not be able to absorb its IPO given its liquidity issues.
An IPO for 15 percent of the e-wallet giant will amount to $1.2 billion—just below the $1.3 billion IPO of Monde Nissin Corp., which was the biggest IPO in the local stock market so far.
GCash has yet to disclose the potential listing date for its IPO.
Globe Chief Financial Officer Carlo Puno, for his part, said it could happen “this year or next year.”
However, he said this is “really dependent” on how the global economy shapes up in the coming months with the lifting of the United States’ (US) reciprocal tariffs on most countries.
US President Donald Trump announced during his so-called “Liberation Day” a 10-percent baseline tariff on all goods coming into America, with additional reciprocal tariffs on countries the US has a trade deficit with. Trump has since suspended the reciprocal tariffs until July.
“I think the Liberation Day added a lot of uncertainty,” said Puno, who nonetheless stressed that that this uncertainty is not stopping GCash in preparing for the IPO.
“When the market opens up, if we find a window where the value, the valuations we're getting and the interest we're getting is appropriate and acceptable, then we will push that button to trigger the IPO,” he noted.
Impact on projections?
Despite the looming threat of Trump’s tariffs, Globe is maintaining its positive projections this year on the back of a solid momentum from 2024.
“I think for now, there's comfort in that the guidance that we've given on the top line will be able to actually weather the immediate impact of the tariffs,” said Puno.
Given the Trump administration’s unpredictable economic strategy, it is uncertain if the reciprocal tariffs it imposed earlier this month will be retained once its suspension is raised after 90 days.
If the tariffs remain the same, the Philippine goods will face a 17-percent tax for its arrival in the US, one of the lowest in Southeast Asia.
“The impact specifically and immediately to the Philippines may be a little muted…the view is that we're going to be a little bit more insulated in terms of the immediate impact of the tariffs,” added Puno.
With this in mind, Globe is maintaining its earlier project of a sustainable free cash flow this year, alongside lowering its capital expenditures (capex) below $1 billion.
The telco giant is likewise anticipating a low to mid single digit revenue increase in 2025, after it set a new record in its consolidated gross service revenues with ₱165 billion in the previous year.