The Securities and Exchange Commission has approved the planned P5.43 billion initial public offering of Upson International Corporation (Upson), the country’s leading retailer of personal computers (PCs) and information technology (IT) products.

In a statement, the firm said the SEC approved last Jan. 12 Upson’s plan to sell to the public up to 789.47 million primary common shares and up to 98.68 million secondary common shares, with an over-allotment option of up to 98.68 million common shares, at up to P5.50 each.

Based on the offer price, Upson expects to raise gross proceeds of approximately P4.34 billion from the primary offer, which will be used to expand its store network and for other general corporate purposes.

Upson targets to open 250 stores or an additional retail space of 25,000 square meters for the next five years – from 2023 to 2027, with aggressive rollout targeted for the next three years, or until 2025.

The roll out plan covers new stores in the National Capital Region (NCR) as well as strategic areas in Luzon, Visayas, and Mindanao.

As a complement to its store expansion, Upson will develop 9 new warehouses and renovate its 6 existing warehouses.

The new warehouses, coupled with increased delivery vehicles and favorable supplier arrangements, will enable Upson to maintain adequate stocks of inventory at uniform prices in all its stores nationwide.

As of Sept. 30, 2022, Upson’s 200 retail network included its own retail brand outlets namely Octagon Computer Superstore, Micro Valley, Gadget King, and Octagon Mobile, as well as other concept stores and specialty stores, such as Acer, HP, Brother, and Silvertec in selected locations.

In its third quarter audit report for 2022, Upson’s net income rose by 68.60 percent to P400.23 million from the P237.38 million booked for the same 9- month period in 2021.

Net sales amounted to P7.03 billion, 10.17 percent higher than the P6.38 billion recorded in the same period of the previous year.

“During the two-year pandemic period of 2020 to 2021, the loss of significant foot traffic was a real challenge for retailers like us,” said Upson President and CEO Arlene Sy.

She added that, “The long-term physical immobility due to lockdowns and precautionary measures resulted in our market’s adaptation via online education as well as work-from-home arrangements. Said adaptations were favorable to us and resulted in our revenue growths of 7.70 percent and 5.10 percent in 2020 and 2021, respectively.”

“The slow return of foot traffic by the second and third quarter of 2022 brings encouraging opportunities that support our growth plans even more. 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 noted.

She said “Our Management recognizes that there are many underserved markets nationwide. We remain committed to make our PCs and IT products within reach of every Filipino up to the farthest borders of this country. This shall be our legacy contribution as the Philippines progresses steadily towards digitalization.”