By
Temitope Olatunji
March 11th, 2024
As part of the plan to launch the IPO, Upson has sought the advice of First Metro Investment Corporation.
The Philippines’ largest retailer of personal computer and information technology products, Upson International Corp (UIC), has announced that it has filed for an Initial Public Offering (IPO) of $103.81 million. According to the report, up to 986.8 million shares are expected to be offered. This includes up to 98.7 million shares of over-allotment options. This will be at the maximum price of $0.11. It is said that the prices of IPOs in the Philippines are usually set above the final selling prices.
“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,” said UIC chief executive Arlene Sy.
The target listing has reportedly been set for September. As part of the plan to launch the IPO, Upson has sought the advice of First Metro Investment Corp.
Upson has recorded an impressive development since its inception with about 183 stores. Also, it plans on expanding its several branches to 250 within the next three to five years. In 2021, its sales jumped by 5% to 8.6 billion pesos ($164 million). Its net income also surged by 95% to 403 million pesos ($7.7 million) according to the report.
Last year, a Philippine tech company, Converge Information and Communications Technology Solutions Inc received the green light from the Philippine Stock Exchange and the Securities and Exchange Commission to launch its Initial Public Offering. Its primary, secondary and over-allotment option shares were fixed at 1.731 billion.
“We strongly believe that Converge ICT is well-positioned to further capture the tremendous market opportunity and we look forward to continuing to be an important part of its exciting growth journey in the future,” said Warburg Pincus managing director Saurabh Agarwal.
Also, Del Monte Philippines, last year got the nod to launch its Initial Public Offering. It was expected that the IPO raises $874 million in the initial share sales as well as the over-allotment option. Its major shareholders, Del Monte Pacific and SEA Diner Holdings planned to sell 699.3 million of the shares at the maximum price of 54.80 pesos ($1.05). According to reports, the allotment option was around 104.9 million.
There was an IPO boom in 2021 in the Philipines market with the Securities and Exchange Commission recording more than 122 billion pesos ($2 billion) in the capital in the first half of the year. This amount was raised through IPOs and sales of existing shares. With the recent announcement of Upson, it is expected that many other Philippine companies also come out with their IPO plans.