Finance Secretary Ralph G. Recto believes e-wallet giant GCash could stage a record initial public offering (IPO) even without regulatory relief from the mandated 20-percent public float.

Recto, the government’s chief economic manager who also oversees the Securities and Exchange Commission (SEC), told Manila Bulletin that the market “probably could” absorb the size of GCash’s offering.

His comments come amid plans by Globe Telecom, one of the major founders of Mynt, the fintech firm behind GCash, to request a lower-than-mandated 20 percent public float for listed companies.

Recto, however, expressed his support for the request for lower public float, given GCash's estimated value of ₱465 billion or more.

The Philippine Stock Exchange (PSE) has also expressed its openness to the proposal, as a 20 percent market float could be worth approximately ₱93 billion, an amount deemed too large for the current market.

The SEC, an attached agency of the Department of Finance (DOF), must approve any regulatory relief for Mynt's listing.

“I am supportive, but it [GCash] probably could,” Recto said in a mobile phone message when asked if he thinks Mynt could achieve a 20-percent public float for its IPO.

The current IPO record is held by snack food maker Monde Nissin Corp. at ₱56 billion in 2021.

Recto noted that Mynt’s request is also “ironic” because a high public float promotes financial inclusion and attracts more retail investors.

When asked about GCash using a follow-on offering to reach a 20 percent float, Recto said, "That's definitely feasible."

On Friday, Mynt Chairman Ernest Cu said he was hoping the PSE and SEC will ease the float requirement for GCash's planned local listing.

“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.

Cu argued that the long-standing 20 percent threshold may not align with GCash’s market perspective.

GCash’s IPO is expected to take place in the second half of 2025 or early 2026. Cu previously described the current requirements as "too rigid," potentially hindering what could be the Philippines' largest IPO.

PSE President and CEO Ramon S. Monzon previously told news website InsiderPH he was "not dogmatic" about the 20 percent requirement, adding that he has discussed with GCash and Ayala Corporation the concern that the 20 percent rule "might be too big for our market."

The PSE and SEC have yet to approve a proposal to waive the 20 percent IPO threshold.

GCash’s value has recently increased significantly, from initial valuations of $2 billion to $5 billion following new foreign investments.

When asked if GCash is considering listing its IPO outside the Philippines, such as on the Singapore Exchange (SGX), which requires a lower 10 percent float, Cu said the focus is currently on 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, up from 7 percent the previous year.