Fruitas sets IPO price, seeks to raise P1B

Fruitas Holdings Inc., a food and beverage kiosk operator, is planning to raise P1 billion later this month through an initial public offering (IPO), the fourth in the country so far this year.

Fruitas Holdings set the final IPO price at P1.68 a share. This is lower than the initial maximum price of P1.99 a share, which would have translated to an almost P1.2 billion IPO.

“The company agreed to price the issue at P1.68 a share in order to ensure a healthy performance of the stock upon listing,” Eduardo Francisco, president of underwriter BDO Capital & Investment Corp., said on Thursday.

Fruitas Holdings is selling up to 28.2 percent of the company to the public. This will be done through a primary offer of 533.66 million shares and an overallotment option of up to 68.34 million shares.

The offer period will run from Nov. 18 to 22. It will make its trading debut on the main board of the Philippine Stock Exchange under the ticker symbol “FRUIT” on Nov. 29 this year.

The company plans to use the proceeds from the IPO to fund its store network expansion and improvement, acquisitions, new concept introductions and debt repayment.

Fruitas grew its business from a single fruit juice stall in SM Manila in 2002.

Today, it owns 900 stores across 20 brands.

It operates fruit shakes under Fruitas, coconut beverages under Buko ni Fruitas, meat-filled pastries under De Original Jamaican Pattie, and lemonade Johnn Lemon.

It is also behind Sabroso Lechon, Juice Avenue, Black Pearl, and lifestyle food parks like Le Village and Uno Cinquenta in Quezon City.

BDO Capital & Investment Corp. and First Metro Investment Corp. are acting as joint issue managers, lead underwriters and bookrunners. RCBC Capital is a participating underwriter.