PSE approves Upson Int’l up to P4.88-B IPO

Upson International Corp. (Upson), the country's largest retailer of personal computers (PCs) and information technology (IT) products, has secured the approval of the Philippine Stock Exchange (PSE) for its up to P4.88-billion initial public offering (IPO). Last January 27, 2023, the local bourse granted the Notice of Approval, subject to certain post-approval requirements, for Upson to sell up to 789.47 million primary common shares and up to 98.68 million secondary common shares, with an over-allotment option of up to 98.68 million secondary common shares, at up to P5.50 each to the public.

Key dates of the transaction include a pricesetting date on February 28, the offer period covering March 6 to March 10, and tentative listing date on March 16, 2023.

Upson operates a nationwide retail network of 200 stores as of September 30, 2022, using several of its wholly-owned retail brand outlets such as Octagon Computer Superstore, Micro Valley, Gadget King, and Octagon Mobile as well as concept and specialty stores like Acer, HP, Brother, and Silvertec in select locations.

“We are both thrilled and grateful to have received the PSE's approval for our planned initial public offering. This is a significant milestone as we look forward to sharing our growth prospects with everyone,” said Upson

President and Chief Executive Officer, Arlene Sy.

Upson aims to raise gross primary proceeds of around P4.34 billion at its offer price, which will be used to fund the expansion of its store network and for other general corporate purposes. The company plans to open 250 new stores or an additional 25,000 square meters of retail space from 2023 to 2027, with majority of the store openings planned for the next three years, or until 2025.

The expansion includes adding warehouses and distribution facilities strategically located in 9 other areas nationwide. The nationwide logistics infrastructure that supplements its retail network is to ensure uniform pricing of its products across all its branches.

According to the 3rd quarter audit report for 2022, Upson experienced a substantial increase in its net income, growing by 68.6 percent to P400.23 million from P 237.38 million recorded in the same 9-month period in 2021.

Additionally, the report reflected a 10.17 percent increase in net sales, reaching P7.03 billion compared to P6.38 billion in the same period of the previous year.

“Our long-valued suppliers and clients have helped us grow to where we are today. Going public is Upson's way of sharing our growth and our success with them thru partnership,” concludes Ms. Sy.