Upson International Corp., the country’s largest supplier of computer hardware and software products, said a delayed P5.4-billion initial public offering (IPO) will push through next month after sales jumped in the postpandemic period.
The operator of mall-based electronics stores such as Octagon Computer Superstore and Gadget King said the Securities and Exchange Commission approved last Jan. 12 its plan to sell 986.83 million shares at up to P5.50 each.
Upson is raising money to finance 250 new outlets by 2027—more than doubling its presence to 450 stores nationwide.
“The slow return of foot traffic by the second and third quarters of 2022 brings encouraging opportunities that support our growth plans even more,” Upson president and CEO Arlene Sy said in a statement on Saturday.
“Our 10.17-percent revenue growth in the third quarter of 2022 compared to the same period in 2021 is close to our prepandemic performance that came with healthier foot traffic,” Sy added.
The company delayed the IPO that was originally set for October last year, saying it was waiting for the release of better financial data in the latter part of 2022.
Upson said in the prospectus that net income from January to September jumped over 68 percent to P400.23 million while sales were up over 10 percent to P7.03 billion.
The IPO consists of 789.47 million primary common shares and up to 98.68 million secondary common shares to be sold by Upson chair Lawrence Lee. The offer includes an overallotment option of up to 98.68 million common shares.
Upson intends to price the IPO shares on Feb. 17 while the offer period will run from Feb. 22 to Feb. 28, based on the latest IPO prospectus, which was dated Dec. 28, 2022.
The company plans to make its Philippine Stock Exchange trading debut under the symbol “UPSON” on March 7, 2023, according to the prospectus.
Once listed, the company would have an estimated public float of 30 percent and market value of up to P18 billion.
“We are encouraged by the interest and support we’ve received from the public with regard to our upcoming initial public offering. We remain committed to deliver on our growth and expansion plans,” Sy said.
Upson tapped First Metro Investment Corp. as issue manager and bookrunner, with RCBC Capital Corp. as joint lead underwriter.
Data from third party research outlet Center for Research and Communication showed Upson was the country’s biggest consumer electronics retailer in 2020 in terms of store count and revenue. INQ
Read Next
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.
For feedback, complaints, or inquiries, contact us.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
