Upson International revives P5.4 billion IPO, sets offer in Feb 2023

Computer hardware and software retailer Upson International Corp. is reviving a P5.4 billion initial public offering in February this year as foot traffic at its stores recovered in the latter part of 2022.

The operator of mall-based electronics stores such as Octagon Computer Superstore and Gadget King earlier delayed the IPO that was originally set for October last year.

“The slow return of foot traffic by the second and third quarter of 2022 brings encouraging opportunities that support our growth plans even more,” Upson President and CEO Arlene Sy said in a statement on Saturday.

“Our 10.17 percent revenue growth in the third quarter of 2022 compared to the same period in 2021 is close to our pre-pandemic performance that came with healthier foot traffic,” Sy added.

Upson said the Securities and Exchange Commission approved its plans to sell 986.83 million shares at up to P5.50 per share last Jan. 12.

The offer proceeds will be used to bankroll the opening of 250 stores, or an additional retail space of 25,000 square meters, through 2027. It had 200 stores at the end of September last year.

The IPO consists of 789.47 million primary common shares and up to 98.68 million secondary common shares. It will also have an over-allotment option of up to 98.68 million common shares.

Upson intends to price the IPO shares on Feb. 17 this year while the offer period will run from Feb. 22-Feb.28, based on the latest IPO prospectus, which was dated Dec. 28, 2022.

The company plans to make its Philippine Stock Exchange trading debut under the symbol “UPSON” on March 7, 2023, the prospectus showed.

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