Fruitas IPO plan gets PSE nod

The Philippine Stock Exchange has approved an initial public offering (IPO) worth up to P1.2 billion by leading food and beverage kiosk operator Fruitas Holdings Inc. in November.

Fruitas will offer up to 533.66 million firm shares with an overallotment option of up to 68.34 million shares at a maximum price of P1.99 each.

The IPO pricing will be finalized on Nov. 14 while the offer period will run from Nov. 18 to 22 this year, Fruitas said in a statement on Thursday.

Shares of Fruitas will list on the main board of the Philippine Stock Exchange on Nov. 29 under the ticker “FRUIT.”

IPO proceeds will be used for store network expansion and improvement, acquisitions, new concept introductions, and debt repayment.

First Metro Investment Corp. and BDO Capital & Investment Corp. are the joint issue managers, joint bookrunners, and joint lead underwriters for the offering.

Fruitas has over 20 brands in its portfolio, including Fruitas Fresh From Babot’s Farm, Buko Loco, Juice Avenue, Buko Ni Fruitas, Johnn Lemon, Black Pearl, and a number of food parks.

Fruitas has expanded from more than 400 stores as of 2016 to 949 stores as of June this year.

In 2018, Fruitas reported P1.58 billion in consolidated revenue, marking a 37-percent increase from its P1.15 billion revenue in 2017.

The IPO will bring to public hands up to 28.2 percent of Fruitas’ issued shares.

Riding on improving consumer affluence in the country, Fruitas aims to open 150 to 250 new stores each year through 2022.  It plans to grow existing brands, develop new ones or buy other enterprises. It also plans to open two more food parks up to 2021, in addition to existing two hubs in Quezon City.