Philippine fintech startup GCash eyes $1.5 billion IPO, hires banks
Nickie Louise
Posted On January 10, 2025
Philippine fintech startup GCash is gearing up for what could become the country’s largest stock offering, with plans to raise up to $1.5 billion through a domestic IPO. The company has enlisted major financial players, including Citi, Jefferies, and UBS, to guide the offering, according to three sources familiar with the matter.
The IPO could take place as early as the second half of 2025 or in 2026, contingent on market conditions, two sources shared. If successful, the listing would surpass the $1 billion IPO of Monde Nissin in 2021, marking a historic milestone for the Philippines.
When approached for comment, GCash pointed Reuters to a statement from its parent company, Globe Telecom.
“We would like to reiterate that GCash’s plan is to be push-button ready for an IPO when the opportune time comes, but no final decisions have been made at this point,” Globe Telecom said in a statement, according to a report from Reuters.
Bloomberg first reported that GCash had appointed HSBC, Jefferies, JPMorgan, Morgan Stanley, and UBS for the IPO. Representatives for Citi, HSBC, Jefferies, JPMorgan, Morgan Stanley, and UBS declined to comment on the matter.
A Fintech Giant in the Making
With over 94 million users, GCash is the most popular finance super app in the Philippines—its user base even exceeds the population of Germany. Launched in 2004, GCash began as a simple SMS-based money-transfer service aimed at the underbanked population. Over the years, it has expanded into credit, remittance, and investments, reaching users across 16 countries and territories.
The app operates under Mynt, a fintech startup established in 2015 through a partnership between Globe Telecom and Ant Group, an affiliate of Alibaba. Together, Globe and Ant Group own nearly 70% of Mynt. Separately, Ayala Corp., a Philippine conglomerate, recently raised its stake in Mynt to 13%.
GCash achieved a valuation of $5 billion in August 2024 when Mitsubishi UFJ Financial Group acquired an 8% stake for $393 million. This valuation more than doubled from its $2 billion valuation during a previous funding round in 2021.
Boosting Southeast Asia’s IPO Landscape
A successful IPO for GCash could inject momentum into the Southeast Asian IPO market, which saw a significant decline in 2024, with total proceeds dropping to $3.28 billion from $5.76 billion in 2023, according to LSEG data. The Philippines, however, experienced a bright spot, with IPO proceeds jumping to $234.1 million in 2024 from just $72.9 million the previous year.
GCash describes itself as the nation’s “number one finance app and largest cashless ecosystem.” Its features range from money transfers to bill payments, serving millions of users both in the Philippines and abroad.
With a potential IPO on the horizon, GCash not only solidifies its position as a fintech powerhouse but also offers a promising boost to the region’s capital markets.
