Computer information technology products retailer Upson International Corp. has received the regulatory approval from the Securities and Exchange Commission (SEC) for its P5.43 -billion initial public offering (IPO) this year.
The company is looking to sell to the public up to 986.83 million common shares at P5.50 per share, divided into 789.47 million primary common shares and 98.68 million of secondary common shares covering the initial sale and another 98.68 million common shares to cover the greenshoe option.
Upson expects to raise approximately P4.34 billion from the primary offer, which will be used to expand its store network and for other general corporate purposes.
Upson targets to open 250 stores or an additional retail space of 25,000 square meters from 2023 to 2027, with aggressive rollout targeted for the next three years, or until 2025.
The rollout plan covers new stores in the National Capital Region as well as strategic areas in Luzon, Visayas, and Mindanao.
As a complement to its store expansion, Upson said it will develop nine new warehouses and renovate its six existing warehouses.
“The new warehouses, coupled with increased delivery vehicles and favorable supplier arrangements, will enable Upson to maintain adequate stocks of inventory at uniform prices in all its stores nationwide,” the company said.
As of Sept.30, 2022, Upson’s 200 retail network included its own retail brand outlets 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.
Upson closed the first nine months of 2022 with profit of P400.23 million, over sales of P7.03 billion. The company’s bottomline was a 68.6 percent increase from the prior year’s P237.38 million, the topline meanwhile was a 10.17 percent increase from P6.38 billion in 2021.
