PSE approves Upson’s nearly P5-B initial public offering

INFORMATION technology retailer Upson International Corp. has secured approval from the Philippine Stock Exchange (PSE) on its P4.88-billion maiden offering.

“We are both thrilled and grateful to have received the PSE’s approval for our planned initial public offering (IPO). This is a significant milestone as we look forward to sharing our growth prospects with everyone,” Upson President and Chief Executive Officer Arlene Louisa T. Sy said in a press release on Monday.

Subject to post-approval requirements, the local bourse issued the notice of approval to the company on Friday.

The maiden offering will allow 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 P5.50 each.

The IPO’s price-setting date is set on Feb. 28, while the offer period will run from March 6 to 10. The tentative listing date is on March 16.

“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 said.

Among its plans is to open 250 new stores or an additional 25,000 square meters of retail space from 2023 to 2027. Its expansion plans also include adding warehouses and distribution facilities in nine other areas nationwide.

“The nationwide logistics infrastructure that supplements its retail network is to ensure uniform pricing of its products across all its branches,” the company said.

Upson’s nine-month 2022 net income grew by 68.6% to P400.23 million from P237.38 million in the same period a year earlier.

The company’s net sales as of September of last year also rose by 10.2% to P7.03 billion from P6.38 billion in 2021.

“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 through partnership,” said Ms. Sy.

Upson operates a nationwide retail network of 200 stores as of Sep. 30, 2022, through its several wholly-owned retail brand outlets which are: Octagon Computer Superstore, Micro Valley, Gadget King, and Octagon Mobile.

It also has concept and specialty stores like Acer, HP, Brother, and Silvertec in select locations. — Justine Irish D. Tabile