Leading retailer of IT products in the Philippines Upson International Corp. (Upson) adjusted its initial public offering to the first quarter of 2023.
Upson, which offers its retail products through its stores Octagon Computer Superstore, Micro Valley, and Gadget King, initially intended to have its shares listed by October of this year. The company intends to offer up to 888,157,800 of its common shares – up to 789,473,600 allotted for Primary Offering and up to 98,684,200 for Secondary Offering – with an over-allotment option of up to 98,684,200 Option Shares. Upson will use the proceeds from the IPO to expand its store network and improve its supply chain and logistics.
“The retail business has foot traffic as a fundamental growth driver. Yet, despite the pandemic years of 2020 to 2021, Upson’s revenue growth was driven by its market’s adaptation to online education and work-from-home. The “return to normal” for the rest of the year gives us confidence that the pre-pandemic sales growths will continue to define the opportunities at hand,” shared Upson President and CEO, Arlene Sy.
The company’s updated prospectus following the adjusted timetable for the IPO will highlight its market performance for the third quarter of 2022. In August 2022, Upson reached a new milestone by opening its 200th store, from 183 stores at the end of December 2021. The company still aims to open 250 stores or an additional retail space of 25,000 sq.m. from 2022 to 2026, with an aggressive rollout in the next three years.
The plans of Upson to adjust the IPO timetable are aligned with the views of both their underwriters, First Metro Investment Corp. and RCBC Capital Corp. Operational updates covering nine months, including the third quarter financials, would enable investors to better estimate a full-year performance.
Upson remains steadfast on their plans for their forthcoming IPO. “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. We continuously aim to be every Filipino’s partner of choice for their digital future. ” said Sy.
A copy of the draft preliminary offering circular on the Offer is available at https://www.upson.com.ph/investor-relations/prospectus/