Underwriters managing the planned ₱92.3 billion initial public offering (IPO) of Mynt Inc., the operator of the mobile wallet GCash, are in discussions with regulators to reduce or eliminate a mandatory 20 percent share allocation for local trading participants.

The push to modify the rule comes amid intense demand from global institutional investors for what is positioned to be the largest stock market debut in Philippine history.

The Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) are reviewing the request, which would alter long-standing listing requirements designed to protect domestic brokerages.

Under current PSE rules, a fifth of any IPO must be allocated to eligible local stock brokers for distribution to their clients, while an additional 10 percent is carved out for the local small investors program.

PSE President Ramon S. Monzon confirmed that regulatory officials have raised the possibility of dropping the mandatory broker allocation.

But Monzon expressed caution regarding the proposal, warning that eliminating the channel could disenfranchise domestic retail investors who rely on local broker networks to access large listings.

“If you remove the broker allocation, how are you going to service the retail clients of the brokers?” Monzon said, noting that major institutional underwriters are typically unequipped to manage small retail accounts. The local exchange has roughly 120 stock brokerage firms, with at least 40 to 50 active players expected to face client demand for Mynt shares.

The PSE has sought to cultivate its retail investor base to boost liquidity, drawing comparisons to emerging markets like Vietnam, where individual retail traders have driven significant market growth.

Monzon pointed to international precedents where retail tranches remained substantial, citing early discussions surrounding global technology blockbusters like SpaceX, where large percentages were routed to individual investors through broker pools.

The proposed ₱10 per share maximum offer price values the fintech giant at roughly ₱669 billion. Mynt may leverage its own platform to bypass traditional hurdles, exploring plans to market the offering directly to GCash’s 90 million registered users.

Individual subscribers purchasing shares through the mobile application would be routed through AB Capital Securities Inc., the partner brokerage in which Mynt recently acquired a 33 percent stake.

Monzon suggested that AB Capital would likely play a direct role in the book-building process to facilitate the digital retail tranche.

While the local small investors program will remain intact, it features strict regulatory caps on individual subscription sizes to promote broad asset distribution.

The average retail investment on the PSE stands at approximately ₱100,000, though thresholds are occasionally raised to ₱1 million for landmark capital raises.

Monzon urged SEC Chairman Francis E. Lim to carefully weigh the structural implications for smaller market participants before approving changes to the distribution framework.