Three IPOs lined up for Philippine bourse as Mynt, VITRO, Aznar Shipping test investor appetite
The Philippine Stock Exchange is set for a busy period with three initial public offerings, including Mynt Inc., the fintech behind GCash, which could become the bourse's largest-ever listing. Analysts caution that success depends on post-listing performance and whether the IPOs attract fresh capita
The Philippine Stock Exchange (PSE) is preparing for a flurry of initial public offerings, with three companies — Mynt Inc., VITRO Inc. and Aznar Shipping Corp. — set to test whether new listings can draw capital into a market struggling with weak sentiment and limited liquidity. Mynt, the financial technology company behind GCash, has secured PSE approval and is targeting its listing on 20 Oct, offering up to 1.61 billion primary shares and 6.42 billion secondary shares, with an overallotment option of as many as 1.2 billion secondary shares.
Mynt filed in June for an IPO of up to P92.3 billion, which the PSE has said could become the biggest public offering in its history. Last week, Mynt said it had secured commitments from more than 20 global and domestic cornerstone investors, though these remain subject to reallocation between tranches, final pricing and other closing conditions. VITRO, the data centre arm of PLDT Inc., has filed for what could become the country's first digital infrastructure real estate investment trust, while Aznar Shipping has proposed an offering of as much as P737 million.
Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said the return of IPO activity is constructive for market sentiment as it brings new investment opportunities and improves market depth. However, he cautioned that a large IPO could temporarily drain liquidity from existing stocks as investors raise cash to participate, and that the more important signal is whether new listings attract incremental capital rather than simply redistribute the market's already limited liquidity.
Jarrod Leighton M. Tin, a research analyst at DragonFi Securities, Inc., said the performance of the IPOs would be crucial in determining whether the pickup translates into stronger investor participation. A new listing that trades comfortably above its offer price and delivers positive returns gives investors a reason to re-engage with the market, while listings that fall below their offer prices soon after their debut could leave investors with fresh losses. Mr Tin said IPOs should also be spaced out to give the market time to absorb each listing.
Denise Joaquin, a research analyst at COL Financial Group, said the Mynt and VITRO listings could renew interest by giving investors exposure to fintech, data centres and artificial intelligence-related growth. She cited reports that Mynt could price its shares closer to P7 apiece, below its maximum offer price of P10, which could reflect the weaker market backdrop and the need to offer investors a more attractive entry valuation. Mynt's final offer price is expected to be set on 1 Oct following the completion of bookbuilding.
BDO Securities Corp. President John Tristan D. Reyes said the pickup in IPO activity signals stronger confidence among companies seeking capital and investors willing to deploy funds, but that IPOs alone would not be enough to drive a sustained market recovery. Ultimately, broader factors such as economic growth, the interest rate environment, corporate earnings and overall liquidity will remain the main drivers of sentiment, he said.
