GCash targets biggest IPO in Philippine history with $1.5 billion
GCash prepares for $1.5 billion IPO, the largest in Philippine history
GCash, the leading fintech firm in the Philippines, is gearing up for a potential initial public offering (IPO) worth up to $1.5 billion, which would mark the country’s largest ever stock offering, according to multiple sources familiar with the matter.
The Philippines-based app, widely used for digital payments and financial services, has hired major investment banks including Citi, Jefferies, and UBS to assist with the listing, reports Reuters.
The IPO is tentatively slated for the second half of 2025 or 2026, depending on market conditions. Should it go ahead, it would surpass the $1 billion IPO of Philippine food company Monde Nissin in 2021, setting a new record for the nation's capital markets.
GCash and Globe Telecom's Statements on IPO plans
While details remain scarce, GCash’s parent company, Globe Telecom, has referred to a statement issued by the company to the Philippine Stock Exchange, noting that there is no material information to disclose regarding the banks hired for the IPO. Globe Telecom reiterated that while GCash intends to be "push-button ready" for an IPO, no final decisions have been made.
The announcement has sparked a wave of interest in Southeast Asia’s IPO market, which has seen a significant decline in proceeds over the past year. IPO proceeds in the region dropped 43% in 2024, according to data from LSEG, with the Philippines raising only $234.1 million in IPOs in the same year, a sharp increase from $72.9 million in 2023.
A boost for Southeast Asian IPOs
GCash, which claims to be the Philippines' number one finance app and largest cashless ecosystem, could inject much-needed momentum into the country’s IPO market. Its platform offers a range of services, including bill payments, money transfers, and cashless transactions, and is popular among millions of users.
The company’s valuation soared to $5 billion last year after securing major investments from Ayala Corp and Japan's Mitsubishi UFJ Financial Group. This was a significant jump from a previous valuation of $2 billion in 2021, signaling strong investor confidence in the firm's future growth prospects.
Additionally, LG Corp.’s tech-services unit, LG CNS Co., has started taking orders for an initial public offering (IPO) in Seoul that could raise as much as 1.2 trillion won ($816 million), which would make it South Korea’s largest IPO in three years.
