E-WALLET giant GCash is preparing for a potential initial public offering (IPO), but the timing remains uncertain due to market volatility caused by new US tariffs under President Donald J. Trump, Globe Telecom, Inc. said on Tuesday.
“The Liberation Day added a lot of uncertainty. I think this uncertainty does not stop us from preparing. The goal is to get GCash to a point where we are push-button ready. So, when the market opens up, if we find the window where the valuations and interest we’re getting are appropriate and acceptable, we will push that button for the IPO,” Globe Chief Financial Officer Juan Carlo C. Puno said at the company’s annual stockholders’ meeting on Tuesday.
Globe owns a 36% interest in Globe Fintech Innovations, Inc. (Mynt), which owns the operator of GCash, G-Xchange, Inc.
Globe’s planned IPO for GCash would proceed despite market uncertainties, Mr. Puno said, adding that the public listing would likely happen either this year or next year.
“Whether that happens this year or next year, it really depends on how this whole Liberation Day tariff situation evolves over the next few months,” Mr. Puno said.
Mr. Trump has disrupted the global trade system with his “Liberation Day” tariffs, including a 10% duty on goods from all countries.
The Philippines has been hit with an 18% tariff on its exports to the US, but these, along with most reciprocal tariffs, have been suspended for 90 days.
“What we are doing at Globe and GCash is making sure that all hands are on deck to ensure a successful IPO for GCash,” said Carl Raymond R. Cruz, Globe’s president and chief executive officer (CEO), whose appointment was approved by Globe’s board of directors on Tuesday.
Last month, the Securities and Exchange Commission (SEC) announced that it would allow a lower public float for large IPOs. Under this relief, companies planning to list on the Philippine Stock Exchange with an IPO exceeding P5 billion may seek relief to offer less than the required 20% public float.
However, the SEC clarified that it remains firm on the 20% minimum float requirement, noting that companies availing themselves of this exemptive relief can initially offer 15% provided they commit to conducting a follow-on offering or private placements within the next three years.
Additionally, Mr. Cruz said the company is optimistic about sustaining its growth this year, driven by growth in its core services, with fresh contributions from data center growth.
“In the next few years, not only for data centers, but whenever you put them up, they go hand-in-hand with connectivity. So, it’s going to be a big driver in terms of our enterprise space, which is something that we want to have. It is going to be a big part of the company’s growth,” Mr. Cruz said.
Globe, through ST Telemedia Global Data Centres (STT GDC) Philippines, is expecting the initial activation of its 124-megawatt data center in Fairview within this year.
STT GDC Philippines has seven data centers in the Philippines with a combined IT load of 150 MW, according to information from its website.
For 2024, Globe recorded a core net income of P21.5 billion, marking a 14% increase from P18.92 billion in 2023, driven by higher revenues.
The company reported a combined revenue of P165.02 billion, up 2% from P162.33 billion in 2023, driven by a 4% increase in mobile revenues, which rose to P116.71 billion.
Last year, Globe said its mobile subscribers had grown by 7% year-on-year to 60.9 million, while mobile data users had increased by 3% to 37.4 million.
At the stock exchange on Tuesday, shares in the company closed P8, or 0.4% lower, at P2,014 apiece. — Ashley Erika O. Jose