GCash on track with 50% AB Capital Securities buy-in deal
GCash on its way to acquiring a 50-percent stake in AB Capital Securities
(UPDATED) MANILA, Philippines – Dominant e-wallet player GCash has made progress with the acquisition of a 50-percent stake in AB Capital Securities Inc. (ABCSI), a move that is seen to strengthen its foothold in the stock brokerage space.
Parent company Globe Telecom Inc. now owns 23.5 percent percent of ABCSI via Mynt, the e-wallet operator.
Last year, Mynt completed the acquisition of 16-percent ownership after buying a 7.5-percent stake in 2023.
READ: SEC approves sandbox run of stock trading partnership between AB Capital, GCash
The parties entered into a definitive agreement for the acquisition of up to half of the equity stake in the brokerage house in 2023.
Antonio Periquet Jr., an independent director at Globe, is also the executive chair of ABCSI.
“The partnership will add muscle to our common thrust to promote financial inclusion by widening stock ownership among Filipinos,” Periquet said in a text message to Inquirer.
“At present only 2 percent of Filipinos own stocks, versus a much higher percentage who own crypto.”
According to the Philippine Stock Exchange, more retail traders created stock trading accounts in 2023 because GCash has made it more accessible to Filipinos.
Online stock market accounts grew by 21 percent to 1.5 million in 2023, representing 80 percent of total.
Financial inclusion
“They clearly have their sights set on the securities brokerage market as part of a broader push for inclusive financial services,” China Bank Capital Corp. managing director Juan Paolo Colet told the Inquirer.
“Hopefully, the GCash platform will remain open to other stock brokerages who desire to expand their services to a wider retail market,” he added.
On the other hand, digital bank Maya has teamed up with multiple players—Philstocks Financial Inc., 2TradeAsia and DragonFi—for its stock trading service.
GCash currently has 94 million users.
