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PSE races rewriting rules to secure landmark GCash listing
Business
The Stock Market
PSE races rewriting rules to secure landmark GCash listing
PSE races rewriting rules to secure landmark GCash listing
Published May 18, 2026 03:35 pm
Planned initial public offering (IPO) of Mynt, the digital fintech heavyweight backed by Ayala Corp. and Alibaba affiliate Ant Group, will likely look past its initial July target as the company awaits a regulatory overhaul from local bourse officials.
While the operator of the ubiquitous GCash e-wallet is preparing a maiden offering that could value the financial technology firm between ₱280 billion and ₱450 billion, market participants say the company will delay the transaction until the Philippine Stock Exchange Inc. (PSE) finalizes rules reducing the minimum public ownership requirement for large-scale listings.
The Securities and Exchange Commission (SEC) approved a tiered public float framework in February, allowing exceptionally large companies to sell as little as 12 percent of their shares to the public.
The PSE followed with its own proposed rules on May 13, setting a May 20 deadline for market feedback.
Local market participants are split on whether the local exchange can fast-track the changes in time for a mid-year listing. Abacus Securities Corp. cast doubt on a July timeline, noting that the bourse has yet to complete a separate overhaul of its index inclusion parameters that has been pending since last year.
A traditional 20 percent public float for a company of Mynt’s size would heavily dilute existing stakeholders and overwhelm local capital markets.
Based on current valuation targets, a standard listing would require an equity offering of ₱56 billion to ₱90 billion. Abacus Securities warned that local market liquidity cannot easily absorb a transaction of that magnitude without underpricing the assets.
Other investment bankers expect the local bourse to move swiftly to capture the landmark transaction. Jesus Mariano P. Ocampo, vice president of the Investment House Association of the Philippines, said the exchange is actively aligning its rules to accommodate the fintech giant and should meet the necessary timeline.
Juan Paolo Colet, managing director at Chinabank Capital Corp., agreed that the PSE will ensure the rules are finalized shortly, as Mynt is expected to anchor its listing timeline on the regulatory adjustments.
The proposed PSE changes plan to replace a rigid, blanket 20 percent public float requirement with a dynamic tiered framework. Small cap issuers with a market value of ₱500 million or less must float at least 33 percent of their shares.
Firms valued between ₱500 million and ₱1 billion face a 25 percent requirement, with a minimum offer size of ₱165 million. Listings valued between ₱1 billion and ₱50 billion will maintain the 20 percent threshold, subject to a ₱250 million floor.
For mega-listings exceeding ₱50 billion in market value, the baseline float requirement drops to 15 percent, provided the offer size reaches at least ₱10 billion. Exceptional cases with market capitalizations surpassing ₱200 billion can request a lower float of 12 percent, subject to SEC clearance.
The proposed framework also introduces strict post-listing compliance guidelines. Companies must maintain their required public float at all times.
If a corporate action or share transfer triggers a breach, the listed firm must immediately file an interim public ownership report detailing the transaction.
Non-compliant firms will face an immediate trading suspension of up to six months, after which they must either restore their public ownership levels or initiate voluntary delisting procedures.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said, “I think it’s going to be a tight squeeze for the PSE to finalize the amended minimum public ownership rules in time for a June IPO—it’s possible, but not the base case.
Regulatory changes take time, and July is just around the corner. From GCash’s perspective, they won’t anchor their strategy on that uncertainty. They’ll either structure the deal to comply with existing rules or adjust timing based on market conditions—not just regulation.”
He noted that, “At the end of the day, execution, valuation, and investor appetite matter more than whether the rule change lands on time. Market conditions are bad. It would be wise to defer.”