Gadgets retailer Upson International Corp. said Monday it obtained the Philippine Stock Exchange’s approval for its planned P4.88-billion initial public offering.
Upson said in a statement the local bourse granted the notice of approval to the company, subject to post-approval requirements.
The company plans to sell 789.47 million primary common shares and 98.68 million secondary common shares, with an over-allotment option for another 98.68 million secondary common shares at P5.50 apiece.
The final price will be announced on Feb. 28. Offer period will be from March 6 to March 10, and listing was tentatively scheduled on March 16.
“We are both thrilled and grateful to have received the PSE’s approval for our planned initial public offering. This is a significant milestone as we look forward to sharing our growth prospects with everyone,” said Upson president and chief executive Arlene Sy.
Upson was operating a nationwide retail network of 200 stores as of Sept. 30, 2022, using 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.
Upson said it would use the proceeds from the IPO to fund the expansion of its store network and for other general corporate purposes.
It said that from 2023 to 2027, it planned to open 250 new stores or an additional 25,000 square meters of retail space.
The expansion would also include adding warehouses and distribution facilities strategically located in nine other areas nationwide. The nationwide logistics infrastructure that supplements its retail network would ensure uniform pricing of products across all its branches, it said.
Upson said net income jumped 68.6 percent in the first nine months of 2022 to P400.23 million from P237.38 million in the same period in 2021 as net sales rose 10.2 percent to P7.03 billion from P6.38 billion.
“Our long-valued suppliers and clients have helped us grow to where we are today. Going public is Upson’s way of sharing our growth and our success with them thru partnership,” Sy said.