Computer retail king Lawrence Lee’s Upson International Corp. has decided to scale down its initial public offering (IPO) and price it at P2.40 per share, which is 56 percent lower than the maximum indicative price that was previously announced.
The company behind Octagon Computer Superstore and Gadget King has also reduced the size of its IPO by more than a fifth, now aiming to raise P1.65 billion from 687.5 million shares. Upson was originally looking to raise as much as P5.4 billion from its IPO.
This move comes as Upson takes into account recent market weakness and a significant drop in fourth-quarter PC shipments. However, despite these challenges, local analysts remain optimistic about Upson’s long-term potential due to the increasing disposable incomes of consumers.
As the largest mall-based consumer electronics retailer in the country, Upson boasts a network of 200 branches, including 24 standalone stores and 176 mall-based locations. The company also leases six warehouses in strategic locations throughout the country.
Looking to cement its market-leading position, Upson is embarking on an aggressive expansion plan that includes opening 250 stores over the next five years, adding an additional 25,000 square meters of retail space.
The company also plans to develop nine new warehouses and distribution facilities across the country, while improving its logistical capabilities with the addition of 10-wheeler trucks and delivery vans.
First Metro Investment Corp. and RCBC Capital Corp. are acting as joint lead underwriters for Upson’s IPO.
The offer period will run from March 21 to 27 while the listing of the shares has been tentatively set on April 3.