Upson’s first stock sale secures SEC approval

Upson International Corp., a company that sells personal computers and information technology products, said the Securities and Exchange Commission (SEC) has approved its initial public offering (IPO).

On January 12, the Securities and Exchange Commission green-lighted the Company’s plan to sell up to 789.47 million primary common shares and up to 98.68 million secondary common shares, with an option to overallocate up to 98.68 million common shares priced higher to P5.50 each. .

Based on the offer price, Upson expects to increase total proceeds by approximately 4.34 billion pesos from the underlying offering. It could raise up to 5.43 billion pesos, assuming the option to raise the total is fully executed.

The proceeds from the IPO will be used to expand its network of stores and other general corporate purposes.

Upson had earlier shelved its plans for an initial public offering, which was supposed to be scheduled for October last year, and rescheduled it to the first quarter of 2023.

The company is targeting opening 250 stores or an additional 25,000 square meters of retail space for the next five years, from 2023 to 2027, with a strong rollout target for the next three years, or even 2025.

The launch plan covers new stores in Metro Manila as well as strategic areas in Luzon, Visayas and Mindanao.

As a complement to its store expansion, Upson will develop 9 new warehouses and renovate its existing 6 warehouses. The new warehouses, along with an increased number of delivery vehicles and favorable supplier arrangements, will enable Upson to maintain an adequate stock of uniformly priced inventory in all of its stores across the country.

“During the two-year pandemic period from 2020 to 2021, significant traffic loss was a real challenge for retailers like us,” said Arlene C., President and CEO of Upson.

“Long term physical immobility due to lockdowns and precautionary measures has resulted in our market adjusting through online education as well as work from home arrangements. Said adjustments were favorable to us and resulted in our revenue growth of 7.7 per cent and 5.1 per cent in 2020 and 2021 respectively. “

As of September 30, Upson’s retail network includes 200 of its own retail outlets within 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 select stores. websites.

Upson’s net income rose 68 percent to 400.23 million pesos in January to September 2022 from 237.38 million pesos a year earlier. Sales for the period were 7.03 billion pesos, up 10 percent from the previous year’s net sales of 6.38 billion pesos.

“The slow return of foot traffic by the second and third quarters of 2022 brings encouraging opportunities that further support our growth plans. Our revenue growth of 10 percent in the third quarter of 2022 compared to the same period in 2021 is close to our prior performance,” Sy said. The pandemic that came with more healthy traffic.

“Our management understands that there are many underserved markets nationwide. We remain committed to making our computers and IT products accessible to every Filipino right up to the furthest reaches of this country. This will be our longstanding contribution as the Philippines steadily progresses towards digitalization.”

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