Fruitas revives P1.2 B IPO plan

Fruitas Holdings Inc., the food and beverage kiosk operator, has revived its plan to debut in the Philippine stock market.

Fruitas filed an application for a P1.2 billion initial public offering with the Securities and Exchange Commission (SEC).

The company is looking to raise up to P1.2 billion from the sale of up to 533.7 million primary common shares with an over-allotment option of up to 68.3 million outstanding common shares at a maximum price of P1.99 each.

After the offer, the company’s public float can reach up to 28.2 percent of the total issued shares.

Fruitas president and chief executive officer Lester Yu said proceeds would be used for expansion.

“Proceeds would 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,” 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, he said.

Fruitas plans to list before the end of the year with the offer period planned to run from Nov. 18 to 22.

The company is the market leader in the Philippine food cart business. It was founded in 2002 when Yu opened his first kiosk in SM City Manila.

There are three operating companies under Fruitas -- Fruitas Group Inc. which holds most of the brands; Buko ni Fruitas and Negril trading ,which houses the Old Jamaican Pattie Shop.

At present, Fruitas carries well-known brands such as Fruitas Fresh From Babot’s Farm, Buko Ni Fruitas, Fruitas Ice Candy, De Original Jamaican Pattie and Juice Bar, Juice Avenue, The Mango Farm, Buko Loco, Johnn Lemon. Black Pearl, Shou, Friends Fries, and Halo-Halo Islands. It has over 20 brands in its portfolio.

Over the past years, Fruitas has aggressively expanded from more than 400 stores to 949 stores as of the end of June this year.

In 2018, Fruitas reported P1.58 billion in consolidated revenue, up 37 percent due to the trong performance of its stores.

The company tapped BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, bookrunners and lead underwriters for the offering.

Fruitas is the latest company to announce plans to list in the market after AllHome, Axelum Resources, Cal-Comp Technology and Metro Pacific Hospital Holdings Inc.