By Ashley Erika O. Jose, Reporter
GLOBE Fintech Innovations, Inc. (Mynt), operator of GCash, has approved a stock split to increase the number of its common shares ahead of its planned initial public offering (IPO).
“The board of directors and shareholders of Globe Fintech Innovations, Inc. in their special board meeting and annual stockholders’ meeting held today, approved the proposed stock split reducing the par value of the company’s common shares,” Ayala Corp. said in a regulatory filing on Tuesday.
In separate disclosures, Globe Telecom, Inc. and Ayala Corp. said Mynt’s board of directors approved the amendment of its articles of incorporation to reduce the par value of the company’s common shares from P1 each to three centavos per share. This will increase the number of authorized common shares to 71.66 billion from 2.15 billion.
The company’s authorized capital stock will remain at P2.15 billion, the disclosures said.
Ayala-led Globe owns a 36% interest in Mynt, which owns G-Xchange, Inc., the operator of GCash.
“We will make the pertinent disclosure once the company has obtained the approval of the Securities and Exchange Commission (SEC),” Globe said.
“Ayala Corp.’s announcement regarding the stock split of Mynt signifies a strategic move to enhance the company’s appeal in the upcoming IPO,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.
By reducing the par value of its common shares while maintaining the same authorized capital stock, the company is providing greater flexibility for fundraising, Mr. Arce said.
“This maneuver is aimed at improving share liquidity and providing greater flexibility for fundraising, which aligns with the goals of a public offering,” he added.
The stock split could also positively impact GCash’s IPO by making shares more affordable to a broader range of investors, Mr. Arce said.
“The move also signals to potential investors that Mynt is preparing to scale its operations and capitalize on its dominant position in the e-wallet market,” he added.
In April, Globe said the much-anticipated IPO of GCash would likely proceed later this year or next year amid market uncertainties.
Earlier, the SEC announced it would allow a lower public float for large IPOs. Under this relief, companies planning to list on the Philippine Stock Exchange with an IPO exceeding P5 billion may seek approval to offer less than the required 20% public float.
However, the SEC clarified that it remains firm on the 20% minimum float requirement, noting that companies availing of this exemptive relief can initially offer 15%, provided they commit to a follow-on offering or private placements within the next three years.
At the stock exchange on Tuesday, shares in Ayala gained P11, or 1.93%, to close at P581 each, while shares in Globe closed unchanged at P1,800 per share.