The Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of computer products retailer Upson International Corp. that could raise as much as P4.34 billion.
During its September 1 en banc meeting, the agency approved the registration statement of Upson International covering 3.28 billion common shares.
The company will offer to the public up to 789.47 million common shares priced at up to P5.50 per share. The offer will also include 98.68 million in common shares to be issued by a selling shareholder at up to P5.50 per share, with another 98.68 million common shares as overallotment option.
The shares will be listed and traded on the main board of the Philippine Stock Exchange.
“We are grateful for the support of the SEC for their confidence in Upson’s vision to help transform the Philippines into a more digitally-ready country. 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 CEO Arlene Sy said.
Net proceeds from the offer could reach up to P4.15 billion, which Upson will use for store network expansion and general corporate purposes. It can raise as much as P5.43 billion, assuming the overallotment option is fully exercised.
Upson plans to use the IPO proceeds to expand its store network and open 250 branches or an additional retail space of 25,000 square meters from 2022 to 2026. It will prioritize areas with the highest return potential and those where tech products are not readily available.
The company will not receive any proceeds from the sale of the secondary shares by the selling shareholder.
The IPO will run from September 5 to 9, with listing on the PSE scheduled for September 16, according to the latest timetable submitted by the company to the SEC.
First Metro Investment Corp. has been picked as issue manager and bookrunner for the transaction, which will be joined by RCBC Capital Corp. as joint lead underwriter.
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.
As of March 31, the company had a total of 188 store branches across the country, as well as six warehouses in Manila, Cebu, Cagayan de Oro and Davao City.