Fruitas targets IPO by Nov, plans to raise P1.2B
Food and beverage kiosk operator Fruitas Holdings Inc. (Fruitas) plans to raise as much as P1.2 billion from an initial public offering (IPO) targeted by November this year, potentially adding a new consumer play to the local stock market.
Fruitas has filed with the Securities and Exchange Commission an initial prospectus for its plan to offer up to 602 million common shares at a maximum price of P1.99 each, the company said in a press statement on Monday.
The offer will consist of up to 533.66 million primary common shares plus an option to increase by 68.34 million shares. This will bring to public hands as much as 28 percent of the retailer’s stocks.
“The proceeds will be used to fund our store network expansion across the Philippines and expand our commissary to serve more customers. New capital will also be used toward acquisition of foodservice businesses and introduction of new concepts, which have a strategic fit with our operations,” Fruitas president and chief executive officer Lester Yu said.
“We view the potential listing on the Philippine Stock Exchange as part of our growth journey and are excited to have taken the first step by filing our registration statement.”
Part of the proceeds will also be used for acquisitions and debt repayment.
Subject to regulatory approvals, Fruitas intends to run the offer period from Nov. 18 to 22 and aims to list on the stock exchange before the end of the year.
Fruitas has aggressively expanded its footprint from more than 400 stores as of end-2016 to 949 stores as of end-June 2019.
In 2018, Fruitas reported P1.58 billion in consolidated revenues, marking a 37-percent increase from its P1.15-billion revenue in 2017.
Fruitas currently has over 20 brands in its portfolio, including Fruitas Fresh From Babot’s Farm, Buko Loco, Juice Avenue, Buko Ni Fruitas, Johnn Lemon and Black Pearl.
It also operates food parks like Uno Cinquenta on Maginhawa and Le Village The Lifestyle Park on E. Rodriguez Sr., both in Quezon City.
Fruitas also acquired Negril Trading, the company housing De Original Jamaican Pattie Shop and Juice Bar, in 2015 as well as the assets of Sabroso Lechon in 2018.
BDO Capital & Investment Corp. and First Metro Investment Corp. act as joint issue managers, joint bookrunners and joint lead underwriters for the offering.
