By FIL C. SIONIL
For Asian equity markets, Tuesday, Oct. 20, was described as a defining moment.
Yes, Virginia, it was indeed a historic day with two highly anticipated, tech-heavy public debuts in this part of the global market.
Here in Manila, the debutante was Mynt Inc., the parent company of the country’s most preferred e-wallet, GCash, which was listed on the Philippine Stock Exchange under the ticker symbol GCash.
Similarly taking its maiden float on the other side of the region, in Seoul, Elice—a neocloud and AI data center infrastructure provider—was listed on Kosdaq, the Korean Stock Exchange. I was curious about the developments of Elice’s IPO, which I had learned about in September when I attended the World Knowledge Forum in Seoul, an event focused on AI as a game-changer.
From what I’ve read, GCash and Elice both debuted on a wave of intense pre-market and retail hype—oversubscribed!
Yet, amid much fanfare and a ceremonial bell-ringing led by no less than President Marcos Jr., GCash’s market debut closed completely flat at its offer price of ₱6.60 per share.
Comparatively, however, GCash fared much better.
Despite global AI infrastructure being under the spotlight, Elice suffered a sharp decline, tumbling 32.04 percent to close at 61,500 won from its offering price of 90,500 won.
For this market watcher and “tsupitero,” the path of the GCash IPO is not altogether new. Broadband service and technology provider Converge ICT Solutions Inc. proceeded with its IPO at the height of the COVID lockdown six years ago.
Its listing date was in the exact same month, just six days later—Oct. 26. You’re right, Virginia; I have the same observation. What is it with October?
To sidestep a bit: historically, almanacs portray the month of October as a transitional period, marking the end of harvest and the start of winter preparations. Also, the 10th month of the year is known for Oktoberfest. What started as a public horse race and agricultural fair in Munich, Germany, has evolved into the world’s largest folk and beer festival.
Now, as for tsupitero—Virginia, that’s stockbroker lingo for a swing trader or an investor who exits quickly when share prices rise to secure a return on investment. It follows the tenet “don’t be greedy,” because otherwise, you’ll get burned.
Back to the issue at hand: Converge’s price fell 9.4 percent on its first day of trading. By comparison, GCash’s closing price was flat at ₱6.60. I’m no institutional investor, but to me, a flat debut for such a much-vaunted transaction shouldn’t be considered a failure.
Ending flat does not define Mynt, the country’s leading financial services provider. It is simply a reflection of the current macroeconomic environment.
Considering the volatile global markets we’re in at the moment, ending flat is a realistic and rational compromise. Come to think of it, Mynt managed to successfully pull off the largest capital raise in the country’s listing history—at ₱60.9 billion—without crashing.
I fully agree with market analysts that the “hype phase” has ended. With prevailing geopolitical tensions causing inflationary pressures and elevated credit risks, the so-called “honeymoon” is over.
Moving forward, the market will be exacting.
From here on out, as one industry insider noted, Mynt will be judged on its fundamental capacity to turn its 41.5 million active users into highly profitable lending, insurance, and wealth management customers.
What’s your vibe?
Talk back to me at sionil731@gmail.com
