Mynt faces IPO delay as trade war fears rise
- Mynt's IPO is expected to raise between $1 billion and $1.5 billion, which would set a record for the Philippines.
- The company, owned partly by Globe Telecom, is preparing for the IPO but may defer it due to market conditions impacted by US-China trade tensions.
- The decision to delay the IPO emphasizes the need for favorable market conditions for Mynt to enhance its fundraising plans.
In the Philippines, Mynt, the operator of the popular e-wallet GCash, announced potential plans to postpone its initial public offering (IPO) due to the ongoing trade dispute between the United States and China. The company, which is a joint venture owned 36% by Globe Telecom and further backed by prominent investors including Ant Financial and MUFG Bank, has received significant interest in its IPO, expected to raise between $1 billion and $1.5 billion. This would mark the largest maiden share sale in the Philippines since Monde Nissin's IPO in 2021, which raised $1 billion. GCash has gained considerable traction, currently being utilized by approximately 80% of Filipinos. Its growing user base has significantly benefited Globe Telecom's financial performance, with Mynt’s contribution to Globe's earnings projected to rise sharply from 808.3 million pesos in 2022 to an estimated 3.8 billion pesos in 2024. With the IPO filings underway, Globe Telecom’s CEO Carl Cruz emphasized the importance of favorable market conditions for the successful launch of Mynt’s IPO. Despite the readiness to proceed with the IPO, the escalating tensions regarding global trade could dramatically impact market sentiments. Company officials are monitoring the situation closely, as they intend to seize the opportunity at the most favorable time, stressing that all necessary requirements for the IPO are in preparation. This proactive approach underscores the volatility of the current economic environment, where even immensely promising companies like Mynt must navigate significant external pressures. The situation also highlights the interconnectedness of global markets and the potential implications for emerging companies in smaller economies such as the Philippines. The ability for Mynt to achieve its IPO goals as planned will hinge not only on its internal strategies and preparations but also on the external economic landscape. Should the trade dynamics shift favorably, Mynt could still realize its IPO aspirations; however, a further escalation could lead to postponements affecting plans for substantial fundraising efforts.