Mynt shares slip after record Philippine IPO as investors await earnings catalysts

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Mynt shares slip post-IPO

Highlights

Mynt shares fall to P6.27 at Friday close, below debut's P6.60, driven by profit-taking, liquidity concerns, and absence of earnings catalysts.
Mynt IPO raises P60.9 billion, surpasses Monde Nissin’s P55.89-billion record, lists with P441.51 billion market cap, and sees 1.67 billion shares worth nearly P11 billion traded.
Bangko Sentral ng Pilipinas hikes policy rate to 5.5% on Oct. 22, pressuring liquidity and raising concerns about consumer credit for Philippine equities including Mynt.

Post-listing trading and market drivers

As reported by BusinessWorld Online, Mynt shares fall after the company’s market debut last week, with analysts pointing to profit-taking, reduced liquidity and the lack of near-term earnings catalysts. The stock, which trades under the ticker GCASH, closes at P6.27 on Friday, below its debut close of P6.60 on Oct. 20.

Mynt is the most actively traded stock last week, with 1.67 billion shares worth nearly P11 billion changing hands from Oct. 20 to 23, based on Philippine Stock Exchange data. Its decline is steeper than the 1.2% drop in the financial index and the 1.3% fall in the broader PSE index over the same period.

Jervin S. de Celis, an equity trader at First Resources Management and Securities Corp., says the debut absorbs a lot of liquidity and that a thinly floated new listing carries a supply overhang without a fresh earnings catalyst. Jash Matthew M. Baylon, an equity analyst at the same brokerage, says persistent geopolitical uncertainty also weakens sentiment and pushes the local currency past P63 against the dollar, adding to pressure on the shares.

Rate outlook and implications for Philippine equities

Mynt raises P60.9 billion from the sale of 9.23 billion shares at P6.60 each, surpassing Monde Nissin Corp.’s P55.89-billion offer in 2021 and setting a new record for a Philippine IPO. The listing gives the company a market capitalization of P441.51 billion, making it the seventh-largest company on the exchange, while retail participation is boosted by GStocks PH within the GCash app, where more than 140,000 users trade nearly P1.1 billion worth of shares.

Despite that demand, analysts say institutions are still looking for clearer signals on earnings sustainability in a high-interest-rate environment. The Bangko Sentral ng Pilipinas raises its policy rate by 50 basis points to 5.5% on Oct. 22, a move that analysts say drains liquidity and raises concerns over consumer credit and loan quality.

Mynt posts revenue of P43.15 billion and net income of P10.82 billion in the first half. Mr. De Celis expects full-year revenue of P89 billion to P91 billion and net income of P21 billion to P22 billion, while Mr. Baylon forecasts about P21.05 billion in full-year net income, with third-quarter results, lock-up clarity and possible index inclusion seen as potential upside catalysts.

In our earlier article on the Philippines’ planned sovereign bond-market reforms and expected index inclusion, we explained how steps to improve price comparability and liquidity could broaden the investor base, but won’t automatically translate into stronger investment or growth. We also noted that thin secondary-market liquidity, high issuance costs, and concentrated ownership/free-float constraints can limit how effectively both bond and equity markets channel funding to businesses—making outcomes highly sensitive to global rates, fiscal credibility, and investor confidence.

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