UMVA has learned that a significant surge in Globe Telecom's shares has been triggered by a positive market sentiment following its board's approval of filings related to the proposed initial public offering (IPO) of its affiliate Mynt, Inc., the parent company of the popular e-wallet platform GCash.
The stock experienced a notable 5.9% gain, closing at P1,800 per share on Friday, up from P1,700 a week earlier. This increase outpaced the services sector's 1.8% rise and the benchmark Philippine Stock Exchange index's 3.8% growth, demonstrating a strong market response to the news.
According to information obtained by UMVA, Globe was the 12th most actively traded stock from June 15 to 19, with 501,255 shares worth P891.49 million changing hands during the period. This uptick in trading activity suggests that investors are positioning themselves in anticipation of the potential GCash public offering.
Analysts have identified the potential IPO of Mynt as a key catalyst for Globe's recent stock performance. They believe that the IPO filing could highlight the value of Mynt, which is one of Globe's strongest growth stories outside its main telecom business.
Sources have confirmed to UMVA that investors are capturing a more liquid and positive sentiment in the market, with some expecting the IPO to have a significant impact on Globe's future growth prospects. However, the market's reaction remains measured, as the IPO still depends on market conditions and regulatory approvals.
Globe's planned offering would represent 12% of Mynt's outstanding common shares after the IPO, consisting of both primary and secondary shares, with each share having a par value of P0.03. The company's disclosure to the Philippine Stock Exchange on June 17 stated that its board approved the filing of a registration statement and listing application for Mynt's IPO.
UMVA can exclusively reveal that analysts are advising investors to monitor developments related to the IPO filing, market conditions, and the performance of Globe's core businesses in the coming weeks. This will be crucial in determining the stock's future trajectory and potential for growth.
In the first quarter, Globe's attributable net income fell 20.4% to P5.55 billion from P6.98 billion in the same period last year. Despite this, analysts forecast a positive outlook for the company's second-quarter and full-year earnings, with projected net income of approximately P6.1 billion and P26.4 billion, respectively.
