By Ashley Erika O. Jose, Reporter
MAYA Bank, Inc. is not positioned to pursue an initial public offering (IPO) in the near future, PLDT Chairman and Chief Executive Officer Manuel V. Pangilinan said.
“They have to demonstrate that they can be profitable starting 2025 and to be consistently profitable for at least another year,” Mr. Pangilinan told reporters on the sidelines of the company’s annual stockholders meeting on Tuesday.
He added that Maya needs to establish a firm market standing first before the company can consider an IPO, admitting that GCash, the company’s counterpart electronic wallet platform, dominates the market.
“Whatever GCash is doing, they are doing something right. Certainly better than we are. We have a lot of work ahead of us. To dream of an IPO in the next two years is simply an illusion. It won’t happen, plus the fact the market here is not conducive to an IPO,” Mr. Pangilinan said.
“We are way behind in the digital wallet space. What is the vocabulary, the vernacular for digital wallet? It is not Maya, right? It is GCash,” he said.
Digital lender Maya is expecting to launch more loan and investment products this year to help boost the company’s goal to serve unbanked and underserved markets.
For the first quarter, Maya disbursed P34 billion in loans, with 59% of its borrowers having Maya as their first and only bank, PLDT said in its first-quarter financial briefing, adding that this highlights the digital inclusion roadmap of the company.
For stock market analysts, the decision of Maya to shy away from an IPO at the moment is smart considering the current market conditions.
“Valuations are too low for it to be lucrative enough for Maya to list,” COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said in a Viber message on Wednesday.
Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said the current equity market conditions are not optimal for large IPOs, citing the two companies that went public only got the discounted price on their market debut.
Mr. Colet was referring to OceanaGold Philippines, Inc.’s (OGP) after its stock price closed 6% lower than its IPO price on its market debut; while Citicore Renewable Energy Corp. (CREC) finalized its IPO price at P2.70 per share, down from its initial offer price of up to P3.88 per share.
“The recent offerings of OGP and CREC were priced at a significant discount, so investor appetite is not yet strong enough to support better valuations. Maya is right to wait until conditions are in place to get them the best price for their IPO,” Mr. Colet said.
The current market conditions at the moment indicates cautious market sentiments, Seedbox Securities, Inc. equity trader Jayniel Carl S. Manuel said, citing the Philippine Stock Exchange index thin trading volumes and limited participant activity.
“Without a significant catalyst to boost investor confidence, launching an IPO at this time may not be prudent. Recent IPOs have faced challenges under similar conditions, reinforcing this cautious approach,” Mr. Manuel said in an e-mail on Wednesday.
Further, Mr. Manuel said Maya’s strategy to enhance its EBITDA or (earnings before interest, taxes, depreciation, and amortization) through its premium offerings and innovative financial products positions are good to further establish its foothold in the financial digital space.
“If they continue to deliver impressive financial performance, supported by their integrated payments and banking solutions, an IPO could become a viable option once market conditions improve,” Mr. Manuel said.
Maya Bank is owned by Voyager Innovations, Inc. PLDT Inc. is Voyager’s main shareholder. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
