Research by: Maria Theresa Manalac, Perlyn Tsang (EMBA 2023), Jon Maynard Lascano (IMBA 2022B), Paolo Azurin, & Sandeep Puri
Case Number: W44723
Abstract
The case concerns the initial public offering (IPO) of Upson International Corp. (Upson), a leading retailer of IT products in the Philippines. Upson was scheduled to list on Philippine Stock Exchange on April 3, 2023. The IPO was set to issue 625,001,000 common shares, with an offer price of ₱2.40 per share, and Upson planned to use the net proceeds to expand its network. The objective of the case is to run a stock valuation using the discounted cash flow and forward-looking comparable multiples methods. Students are asked to evaluate the growth prospects, challenges, and risks associated with Upson and the consumer electronics retail industry in the Philippines—and recommend whether or not a retail investor should invest in Upson’s IPO.
Learning Objectives
This case study is designed for use within an introductory finance course or an elective on corporate valuation within an undergraduate or MBA program. After studying the case, students should be able to do the following:
- Assess the attractiveness of a firm as an investment opportunity based on industry and company characteristics.
- Define and describe the terms of an IPO.
- Perform a discounted cash flow valuation with a weighted average cost of capital based on a capital asset pricing model.
- Estimate beta based on stock prices and index values.
- Create a forward-looking comparable multiples analysis.
- Issue a recommendation on whether or not the initial public offering of equity should be bought
To cite this case: Manalac, M. T., Tsang, P., Lascano, J. M., Azurin, P., & Puri, S. (2025). Upson: The initial public offering. Ivey ID: W44723. London, Canada: Ivey Publishing.
To access the case: https://www.iveypublishing.ca/s/product/upson-the-initial-public-offering/01tOF0000098oTuYAI
