Upson International Corp. (Upson), the country’s largest retailer of personal computers (PCs) and information technology (IT) products, is listing today, April 3, under the Main Board of The Philippine Stock Exchange (PSE).
Upson’s offering consisted of 625 million primary common shares, with an over-allotment option of up to 62.5 million shares, priced at P2.40 per share. The IPO raised P1.65 billion.
First Metro Investment Corporation was the issue manager, bookrunner and joint lead underwriter of the IPO. RCBC Capital Corporation was also joint lead underwriter.
“We are happy to note that we had a healthy participation of institutional investors, with a significant majority of investors from foreign funds which is a strong testament to their confidence in our company, the retail sector, and the Philippines at large,” quotes the Upson President and CEO, Arlene Sy.
Net proceeds of the Company from the IPO is estimated at P1.42 billion. To maintain its market-leading position, the Company plans to use this amount to fund its committed store network expansion by opening 250 stores from 2023 to 2027, or an additional retail space of 25,000 sq.m. The expansion can and may also be financed by other fund sources such as internally-generated funds and/or borrowings. For this year, Upson aims to open 50 stores within NCR, and key cities in Luzon, Visayas, and Mindanao. “We understand the ever-growing need for electronic gadgets and accessories, and how it invites competition. Nevertheless, we believe that to maintain our market leadership and for a stronger presence, this will be attained by further establishing stores nationwide. Having a robust nationwide network also helps sustain our customers’ top-of-mind recall of our brands,” Ms. Sy adds.
Upson operates a nationwide retail network of 200 stores as of September 30, 2022, with wholly-owned retail brand outlets such as Octagon Computer Superstore, Micro Valley, Gadget King and Octagon Mobile as well as concept and specialty stores like Acer, HP, Brother, and Silvertec in select locations.
Per the audited financial report dated September 30, 2022, Upson reported a net income of P400.23 million which is a 68.6% increase compared to P237.38 million of the comparable period in 2021. Moreover, net sales rose 10.2% to P7.03 billion from P6.38 billion.
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