UPSON International Corp. saw its share price jump by 20.8% on its market debut on Monday, closing at P2.90 per share from its initial public offering (IPO) price of P2.40 each.
“Price action moved swiftly higher in the last hour of trading, with trading volumes picking up after lackluster trading earlier in the day,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in a Viber message.
On its maiden listing on the main board of the Philippine Stock Exchange, the company — under the ticker symbol UPSON — hit a high of P3.30 per share.
The information technology retailer offered about 625 million common shares with an over-allotment option of 62.5 million common shares.
Mr. Mercado said the company’s value turnover for the day amounted to P47.8 million, which was below the average of P300 million reported by non-real estate investment trust IPOs in the last 12 months.
He said that while Monday’s price action may reflect investors’ optimism on Upson’s growth prospects, “the relatively low value turnover points to possible selling pressure in the coming days as investors could look to secure gains.”
Mr. Mercado said the possible outcome is “against a backdrop of continuing broad market weakness.”
Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that investors would be banking on the company’s store expansion plans.
Upson said in its final prospectus that it will use proceeds from the IPO to open 250 stores from 2023 to 2027, or an additional retail space of 25,000 square meters.
For the year, the company plans to open 50 stores within the National Capital Region and key cities of the country. It has about 200 stores nationwide as of September 2022.
“We are the digital partner of choice in the Philippines with over 200 stores in the broadest range of information technology products,” Upson President and Chief Executive Officer (CEO) Arlene Louisa T. Sy during the company’s listing ceremony.
“We are a partner to the Filipino consumer, and we are a partner to the world’s biggest brands looking to expand in this market,” Ms. Sy added. — Adrian H. Halili
