The Company Behind Octagon and Micro Valley Computer Stores Raises P1.65 Billion in IPO

Upson International Corp., the IT retailer behind some familiar names of computer stores nationwide, formally listed in the main board of the Philippine Stock Exchange on Monday, April 3.

Upson said it raised a total of P1.65 billion in its offer that consisted of 25 million primary common shares and an over-allotment option of up to 62.5 million shares priced at P2.40 each. The company estimates net proceeds from the offer reached P1.42 billion.

“We are happy to note that we had a healthy participation of institutional investors, with a significant majority of investors from foreign funds, which is a strong testament to their confidence in our company, the retail sector, and the Philippines at large,” said Upson President and CEO Arlene Sy.

ALSO READ

Financial Adviser: 5 Things to Know About Upson International Corp's IPO and How to Profit from It

Financial Adviser: 5 Myths About Investing in IPOs and Strategies on How to Make Money from Them 

As already mentioned in Esquire Philippines’ Financial Adviser column last month, Upson plans to use proceeds of the IPO to expand its store network by opening as many as 250 new stores by 2027, or an additional retail space of 25,000 square meters. This year alone it plans to fasttrack its growth by opening 50 new stores in in key cities in Luzon, Visayas, and Mindanao.

The company already operates a network of 200 stores as of September 2022 under the following brands: Octagon Computer Superstore, Micro Valley, Gadget King and Octagon Mobile as well as concept and specialty stores like Acer, HP, Brother, and Silvertec in select locations.

Upson reported a net income of P400.23 million during its last financial report filing in September 2022, a 68.6 percent increase compared to P237.38 million during the same period in 2021. Net sales also rose 10.2 percent to P7.03 billion from P6.38 billion.

“We understand the ever-growing need for electronic gadgets and accessories, and how it invites competition,” Sy said. “Nevertheless, we believe that to maintain our market leadership and for a stronger presence, this will be attained by further establishing stores nationwide. Having a robust nationwide network also helps sustain our customers’ top-of-mind recall of our brands.”