Iris Gonzales – The Filipino star
January 16, 2023 | 12:00 noon
MANILA, Philippines — The Securities and Exchange Commission (SEC) has cleared Upson International Corp.’s proposed IPO. (Upson), a retailer of personal computers and other tech equipment, valued at P4 billion.
Upson plans 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 common shares for up to P5.50 per share.
Following SEC approval, the company aims to complete its IPO in the first quarter, although it has yet to announce the listing date. It was originally scheduled to be listed in September 2022.
Proceeds from the primary offering are used to expand the store network and for other general corporate purposes.
Over the next five years through 2027, the company hopes to nearly double its store portfolio by adding 250 stores or an additional 25,000 square feet of retail space. New stores will open in the National Capital Region (NCR) as well as in strategic areas in Luzon, Visayas and Mindanao.
As of the end of September 2022, Upson had a retail network of 200 branded stores, namely Octagon Computer Superstore, Micro Valley, Gadget King and Octagon Mobile, as well as other concept stores and specialty stores such as Acer, HP, Brother and Silvertec in selected locations.
To complement its store expansion, Upson plans to open nine new warehouses and renovate its six existing warehouses.
The new warehouses will enable Upson to maintain adequate inventory at consistent prices across all of its stores nationwide.
From January to September 2022, Upson reported net income of P400.23 million, up 68.6 percent from the P237.38 million posted a year ago.
This was on the basis of net sales of 7.03 billion pesos during the period, up 10.17 percent from 6.38 billion pesos a year ago.
Arlene Sy, Upson’s President and CEO, said that despite a challenging two years, the company has been able to adapt and expand.
The business plans serve underserved markets.
“Our management recognizes that there are many underserved markets across the country. We remain committed to making our PCs and IT products accessible to every Filipino to the farthest borders of this country. This is intended to be our legacy contribution as the Philippines steadily progress towards digitalization,” said Sy.
“Our revenue growth of 10.17 percent in the third quarter of 2022 compared to the same period in 2021 is close to our pre-pandemic performance, which was accompanied by healthier walking,” Sy said.
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