Upson International delays P4.3-B IPO until Q1/23
Upson International [OCTGN 5.50 pre-IPO] [link] announced overnight that it was delaying its IPO, which was originally supposed to occur next month, to sometime in the first quarter in 2023.
OCTGN said that it wanted to give investors a chance to see the continued sales growth from “return to normal” foot traffic in its 9M/22 financials. OCTGN said that it opened its 200th store in August, which was the 17th new store to begin operations so far in 2022.
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I get the feeling like this story might be different if the PSE was all 7,400 and “stonks up emoji”, instead of 6,400 and “stonks down”. That said, I don’t know that this is just a differently-worded “market conditions” deferral.
Maybe OCTGN has received some push-back on its valuation from anchor investors, who maybe are not willing to accept OCTGN’s projections of continued recovery at face-value.
In that case, it really would be in OCTGN’s best interest to hit pause on the process, produce “prove it” financials, and reconnect with those investors to see if the hard 9M numbers make them feel more comfortable about the projections.
I don’t have any insider info here, but this kind of thing happens all the time.
So yeah, maybe there is an element of OCTGN “reading the room”, but there might also be good reasons (for OCTGN’s owners) to wait a few months to validate some of the projections in the prospectus.
The news reports all mention an updated prospectus, but the Upson website still hosts the old August 8 prospectus. I’ll update the tracker when I can cross reference actual data.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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