Biggest PH computer retailer plans to raise P5.4b from IPO

Upson International Corp., the country’s largest retailer of personal computers and information technology products led by businessman Ricardo Lee, plans to raise up to P5.4 billion from an initial public offering.

UIC, the company behind Octagon Computer Superstore and Micro Valley stores, said in a statement it filed with the Securities and Exchange Commission an application to sell up to 986.8 million common shares, including 98.684 million secondary shares at a price of up to P5.50 apiece.

It said it would use the net proceeds from the offering to expand its store network by 250 branches over the next three to five years, on top of the 183 stores as of end-2021.

“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. These are compelling opportunities that fuel the need for an aggressive expansion of our retail network nationwide,” said UIC president and chief executive Arlene Sy.

UIC sells IT products through various outlets, including Octagon Computer Superstore, Micro Valley and Gadget King. Its revenues expanded 5 percent in 2021 to P8.56 billion in 2021 from P8.15 billion in 2020.

The company said net income surged 95 percent in 2021 to P403.6 million from P206.7 million in 2020.

This represented a compounded annual growth rate of 8 percent for revenues and 78 percent for net income over the last four years.

UIC hired First Metro Investment Corp. as the sole issue manager, bookrunner and lead underwriter for the IPO. Subject to regulatory approvals, the proposed offer period and target listing date in the main board of the PSE is September 2022.

FMIC president Jose Patricio Dumlao said the IPO was expected to draw strong interest among investors, given UIC’s steady and consistent growth in the consumer electronics market.

“UIC, which has a long-standing presence in the retail industry, has been consistently growing and performing so well in the Philippine market. With restrictions slowly easing up, UIC has been taking strategic initiatives to adapt to the constant change in behavior amongst its consumers and to ensure that they’re able to cater to more customers by providing a complete, quality, and an up-to-date suite of IT products both through their physical stores and online platforms,” Dumlao said.