The valuation of MYNT, Inc. ahead of its stock market debut will need to be supported by sustained growth in its lending business and disciplined credit costs, according to Unicapital Securities, Inc.

The brokerage said Mynt, the parent company of GCash, is valued at approximately 25.7 times its 2025 earnings based on its initial public offering (IPO) price of P6.60 per share.

“The valuation reflects expectations of further growth,” Unicapital Securities said in a statement on Monday. “Its premium to some established fintech peers would need to be supported by sustained user monetization, profitable lending expansion, and disciplined credit costs,” it added.

Mynt is scheduled to list on the Philippine Stock Exchange Main Board under the ticker symbol GCASH on Tuesday, Oct. 20 — a day after the brokerage issued its assessment.

The company’s base offering comprises approximately 8.03 billion common shares worth P53 billion, consisting of 1.61 billion newly issued shares and 6.42 billion existing shares offered by current shareholders. The deal size could reach approximately P60.92 billion if the overallotment option covering up to 1.20 billion additional secondary shares is fully exercised.

Under its final IPO prospectus, Mynt plans to allocate 60% of the net proceeds from the primary offering to expanding its CreditTech business, with the remaining 40% earmarked for product development and general corporate purposes. The planned allocation aligns Mynt’s use of primary proceeds with the lending expansion the brokerage said would need to support the stock’s premium valuation.

Unicapital Securities Research Head Wendy B. Estacio-Cruz said investors evaluating new listings should assess company earnings, cash flow, funding requirements, and valuations. The brokerage added that the post-debut performance of newly listed companies would help determine whether investor interest can be sustained — starting with GCASH’s own debut.

“Investor appetite, valuations, and broader market conditions will ultimately determine whether these offerings can generate lasting momentum,” Ms. Estacio-Cruz said.

Beyond Mynt, the brokerage pointed to other potential IPOs that could broaden the range of industries represented on the local stock exchange. These include Cebu-based Aznar Shipping Corp.’s proposed P737-million offering and PLDT Inc.’s planned VITRO real estate investment trust (REIT) listing, which has been moved to 2027.

Ms. Estacio-Cruz said a broader IPO pipeline could give investors additional options, although increased listing activity alone would not necessarily signal a sustained market recovery.

“A more diverse IPO pipeline is a positive development for the Philippine capital market, but the real test will be whether these companies can deliver sustainable growth and attract long-term investor confidence,” she said.

Source: BusinessWorld — Alexandria Grace C. Magno