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SEC approves Upson’s P4.88-b initial public offering plan

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The Securities and Exchange Commission said Monday it approved the P4.88-billion initial public offering of Upson International Corp., the largest retailer of personal computers and information technology products in the country.

Upson International is a retailer of information technology-related merchandise including hardware and software products. The company operates under the brand names Octagon Computer Superstore, Micro Valley and Gadget King.

The SEC said in a statement it cleared Upson’s public offering of 888.157 million common share at a maximum of P5.50 each. They include 789.473 million in primary shares and 98.684 in secondary stocks, with an over-allotment option for another 98.684 million.

Including the over-allotment shares, total proceeds from the IPO could go up to P5.43 billion.

Upson plans to list the shares on the main board of the Philippine Stock Exchange on Oct. 14, 2022. The public offer will run from Oct. 3 to 7.

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Upson plans to use the proceeds from the offering to expand its store network by 250 branches over the next three to five years from 183 stores as of end-2021.

The company will not receive any proceeds from the sale of the secondary shares by the selling shareholder.

“Upson aims to continuously adapt to the rapid growth of digital technology. We shall consistently provide the most relevant and latest IT products through our network expansion across the country,” Upson president and chief executive Arlene Sy said in a statement.

After the IPO, the public will own 30 percent of the company assuming the over-allotment is exercised.

First Metro Investment Corp. is the issue manager, lead underwriter and bookrunner for the transaction, and RCBC Capital Corp. will act as joint lead underwriter.

Upson had 188 store branches across the country and six warehouses in Manila, Cebu, Cagayan de Oro and Davao City as end-March 2022.

Upson International reported a net income of P403.6 million in 2021, up 95 percent from P206.7 million recorded in 2020 as revenues expanded 5 percent to P8.56 billion from P8.15 billion.

This was equivalent to a compounded annual growth rate of eight percent for revenues and 78 percent for net income over the last four years.

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