UPSON International Corp. (UIC) announced on Monday that it had filed an application for an initial public offering (IPO) that is expected to raise P4.88 billion.
The company, a retailer of personal computers and information technology (IT) products, submitted on May 17 its registration statement with the Securities and Exchange Commission (SEC).
UIC plans to offer up to 888,157,800 common shares comprising up to 789,473,600 primary shares and up to 98,684,200 secondary shares. The net proceeds will be used for store network expansion and general corporate purposes.
“There are rapid technological developments in computers and other IT products matched with growing market segments like educational needs and computer and IT-related jobs in all 17 regions. These are compelling opportunities that fuel the need for an aggressive expansion of our retail network nationwide,” UIC Chief Executive and President Arlene T. Sy said.
The company offers its products through outlet brands including Octagon Computer Superstore, Micro Valley, and Gadget King.
“We plan to open 250 branches over the next three to five years to add to our existing 183 branches as of 2021. We pride ourselves with Certifications of Authentic and Untampered products awarded by leading suppliers of computer and IT brand,” she added.
The company tapped First Metro Investment Corp. as the sole issue manager, bookrunner, and lead underwriter for the offering. The proposed offer period and target listing date on the main board of the stock exchange is in September, subject to regulatory approvals.
First Metro President Jose Patricio A. Dumlao said UIC “has a long-standing presence in the retail industry and has been consistently growing and performing so well in the Philippine market.”
“With restrictions slowly easing up, UIC has been taking strategic initiatives to adapt to the constant change in behavior amongst its consumers and to ensure that they’re able to cater to more customers by providing a complete, quality, and an up-to-date suite of IT products both through their physical stores and online platforms,” he said.
In 2021, the company’s net income increased by 95% to P403.6 million from P206.7 million in 2020. — Luisa Maria Jacinta C. Jocson