Octagon, Gadget King owner moves public debut to Q1 2023

Computer hardware and software retailer Upson International Corp. is pushing back its P5.4-billion initial public offering (IPO) to the first quarter of 2023 as it banks on the release of better financial data.

The operator of mall-based electronics stores such as Octagon Computer Superstore and Gadget King said the delay of the IPO, originally set for October this year, was “aligned with the views” of its underwriters.

“The company’s updated prospectus following the adjusted timetable for the IPO will highlight its market performance for the third quarter of 2022,” Upson said in a statement on Wednesday.

It added the figures would “enable investors to better estimate a full-year performance.” Upson said it reached a new milestone with the opening of its 200th store in August. It was its 17th for the year alone.

“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,” said Upson president and CEO Arlene Sy.

“The ‘return to normal’ for the rest of the year gives us confidence that the prepandemic sales growths will continue to define the opportunities at hand,” Sy added.

Upson will sell up to 789.47 million primary shares and 98.68 million secondary shares. Another 98.68 million shares will be offered under an overallotment option. The shares had an indicative price of P5.50 apiece. Upson will use the proceeds from the IPO to expand its store network and improve its supply chain and logistics, the statement showed.

It is targeting to open 250 stores or an additional 25,000 square meters of retail space from 2022 to 2026.