Mynt, owner of the popular Philippine digital wallet GCash, priced its initial public offering at 6.6 pesos per share, placing the company's market capitalization at approximately 120 billion pesos ($2.04 billion) on an estimated 18.2 billion shares outstanding.
The pricing at the higher end of initial guidance reflects robust demand from institutional and retail investors, signaling a decisive rotation out of fixed income. The shift matters for the bond market: strong local consumption trends and a growing digital economy are pulling capital into equity risk at precisely the moment when the Bangko Sentral ng Pilipinas (BSP) is holding its overnight borrowing rate at 6.5 percent.
This reallocation threatens duration at the short and intermediate ends of the curve. The Philippine 10-year government bond yield currently stands at 6.8 percent—only 30 basis points above the policy rate—leaving little cushion for upward pressure if equity inflows accelerate. Corporate bond spreads in growth-dependent sectors face particular compression risk as capital exits fixed income for higher-equity upside.
Foreign institutional investors participated in the book-building process, suggesting broader confidence in Philippine assets. Capital inflows could support the Philippine peso and ease import-driven inflation, giving the central bank room to hold rates steady even as the stock market gains eight percent year-to-date.
Final regulatory approvals for trading on the Philippine Stock Exchange are pending. Mynt will release its prospectus early next week.
