E-wallet giant GCash is optimistic that the country’s regulatory bodies will ease the public float requirement for its planned initial public offering (IPO), which is expected to be the Philippines’ biggest to date.
The Philippine Stock Exchange (PSE) and the Securities and Exchange Commission (SECC) mandates listed firms to maintain a public float of 20 percent from its outstanding shares—essentially, the portion of shares held by public investors.
Ernest Cu, president and CEO of GCash’s parent company Globe Telecom Inc., said he is still upbeat that the SEC and PSE will consider a reduction in public float.
“We remain very optimistic that the PSE, the SEC will see that this IPO is quite unique in terms of its size, in terms of the interest of the public and the international investors,” Cu said on Friday, Feb. 7.
Cu said the long-standing threshold in public float may not necessarily align with GCash’s perspective on the market.
Based on reports, GCash’s IPO is expected to take place by the second half of 2025 or early 2026.
This is expected to be the country’s biggest listing ever with estimates of around $1.5 billion, surpassing the record of $1 billion by Monde Nissin Corp.
GCash’s value recently saw an immense uptick, from initial valuations of $2 billion to $5 billion following the entry of new foreign investments.
Cu noted that the 20 percent requirement for public float is “quite rigid” given the current standing of the market.
“I think it’s in the best interest of everyone if they will consider the reduction in public float,” Cu explained.
The PSE index (PSEi) last week plunged into bear market territory, where stocks fell by 20 percent from the most recent peak, as investor sentiment dipped by the Philippines' low economic growth rate last year.
However, when asked if GCash is considering list its IPO outside the Philippines, such as the Singapore Exchange (SGX) which requires a lower 10 percent float, Cu said the focus right now is a local listing.
“We have not really looked at other venues outside the Philippines to date,” he said.
Based on Globe’s latest financial results, GCash’s share reached ₱3.8 billion last year, a 59 percent increase from ₱2.4 billion in 2023.
This represents a 12 percent contribution to Globe’s pre-tax net income, which is up from 7 percent from the previous year.