MANILA, Philippines — Fruitas Holdings Inc. of businessman Lester Yu has raised P200 million from the issuance of corporate notes to institutional buyers, allowing the food and beverage firm to raise more capital for its product expansion.
In a stock exchange filing on Wednesday, Fruitas said the notes were sold to “qualified individual or institutional buyers (QIBs).”
Corporate notes are considered a quicker fundraising option for companies, as these are sold to no more than 19 primary institutional lenders.
“The proceeds will be used for working capital requirements and general corporate purposes,” Fruitas noted in its disclosure.
QIBs are exempt from the Securities and Exchange Commission’s registration requirement to purchase funds or securities, usually due to their experience, assets, and high net worth.
The private placement was arranged by RCBC Capital Corp.
According to Fruitas, which operates bakery chain Balai Ni Fruitas, the note issuance will help diversify its financing resources to fund the expansion of its product offerings.
READ: Fruitas sprouted P113-M profit in 2023
“The milestone represents a significant step forward for Fruitas Holdings, signifying our increasing prominence in the market,” Yu said.
Fund for expansion
“We express our utmost gratitude to the investors who subscribed to our notes. We will reciprocate this confidence by delivering on our strategic initiatives,” he added.
The company’s brand portfolio includes Balai Pandesal, Buko Ni Fruitas and De Original Jamaican Pattie.
It acquired noodle house Ling Nam and cloud kitchen Fly Kitchen in 2023.
Inquirer Biz Buzz earlier reported that Balai Ni Fruitas is set to announce an acquisition of a known bakeshop brand.
READ: BIZ BUZZ: A ‘sweet deal’ for Lester Yu
Fruitas saw its net income last year grow by 37 percent to P113 million as store sales and its e-commerce business expanded. The company completed its acquisition of noodle house Ling Nam in March 2023, which Fruitas said had significantly contributed to revenue growth and profitability.
In the same year, Fruitas expanded its cloud kitchen business after acquiring Fly Kitchen.
Fruitas opened 44 new stores in 2023, with its network now composed of 817 stores spanning several brands—including Balai Pandesal, Buko Ni Fruitas, and Jamaican Pattie. —MEG J. ADONIS