Globe CEO Says GCash Targets IPO ‘Sometime in 2025’

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Four months after the last update on the status of the upcoming initial public offering (IPO) of mobile e-wallet giant GCash, Globe CEO Ernest Cu said in an interview that the e-wallet firm may go public in the Philippines next year.

Gcash IPO by 2025?

Cu mentioned that the fintech app is considering going public in the Philippines next year and is open to new investors and an overseas listing. Globe CEO Ernest Cu also chairs Globe Fintech Innovations Inc. (Mynt), the holding company for GCash.

“We want to do it sooner rather than later. Sometime in 2025 would be the best estimate I can give you,” he shared.

Cu stressed that despite GCash’s growth and profitability, an IPO may be needed to provide liquidity for investors.

Moreover, he stated that although Globe Telecom Inc. prefers to list GCash in the Philippines, they are also considering a dual listing in the U.S. to take advantage of the greater liquidity in the U.S. market, given the limited trading volumes in the Philippines. Cu added that the company, with 94 million users, has attracted significant interest from foreign funds and private investors, offering tempting valuations.

In a report, it was also noted that Cu did not disclose the valuation sought for GCash or the expected amount to be raised from the IPO.

GCash IPO Updates Timeline

An IPO, or initial public offering, is the process by which a private company becomes publicly traded by issuing new shares to the public. This helps the company raise capital for expansion and other purposes while also offering increased visibility, public market access, and liquidity for its shares. Post-IPO, the company’s shares are listed on a stock exchange, and it must comply with regulatory disclosure obligations.

June 2021

GCash first is considered an IPO on the Philippine Stock Exchange to fund its expansion. It was hinted that the IPO aims to support GCash’s goal of reaching a P2 trillion gross transaction value that year.

November 2022

The e-wallet firm dismissed plans for an IPO due to unfavorable market conditions amid the “tech winter.” CFO Tek Olano stated that the current market is not conducive for listing. 

June 2023

Last year, Cu revealed that Gcash was gearing up for a potential IPO in 2023. He highlighted GCash’s growth and profitability, stating the company aims to be ready for the IPO by year-end. At the time, the e-wallet had around 77 million users.

January 2024

According to G-Xchange CEO Oscar “Ren-ren” Reyes, Jr., GCash was preparing for a potential IPO in the latter half of the year, with the exact timing dependent on market conditions. He noted that the company aims to be ready for the IPO when the opportune moment arises, focusing on growth and maintaining its reputation as a trusted financial platform.

Recent Gcash News

Recently, Queen Máxima of the Netherlands, serving as the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development, praised GCash for its significant contributions to financial inclusion. 

In March, the Bangko Sentral ng Pilipinas (BSP) approved the overseas expansion of GCash, allowing it to operate in ten additional countries. This expansion will enable users in these countries to send money for free (GCash-to-GCash), pay bills, and purchase load credits easily through the app. 

Last February, GCash partnered with Axie Infinity to enhance the Filipino web3 gaming experience by integrating a seamless cryptocurrency transaction portal within GCash’s GCrypto platform. This collaboration will allow users to securely transfer cryptocurrency from the Axie ecosystem to GCrypto and easily convert in-game currencies into fiat money or Philippine pesos within the same app. GCrypto will also serve as a conversion portal for other games within Sky Mavis’ Ronin ecosystem.

This article is published on BitPinas: Update: Globe CEO Says Gcash Targets IPO ”Sometime in 2025”

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