FRUITAS Holdings, Inc. on Thursday priced its initial public offering (IPO) at P1.68 each, the low-end of its indicative range.
“The Company agreed to price the issue at P1.68 per share in order to ensure a healthy performance of the stock upon listing,” BDO Capital & Investment Corp. President Eduardo V. Francisco was quoted as saying in a statement.
BDO Capital together with First Metro Investment Corp. are the joint issue managers, bookrunners and lead underwriters for Fruitas’ IPO.
“Given the attractive pricing, we look forward to more participation from the general investing public investors.” First Metro Executive Vice-President Daniel D. Camacho added.
The food and beverage kiosk operator will start its offer period on Nov. 18 and will last until Nov. 22. It will offer 533.66 million shares with an over-allotment option of up to 68.34 million shares, which will raise up to P1.01 billion for the company.
If Fruitas followed its maximum share price of P1.99 apiece as earlier announced, it would have generated up to P1.2 billion from the IPO.
Fruitas is scheduled to list on the Philippine Stock Exchange on Nov. 29 and will trade under the ticker FRUIT. If the offer maximizes the overallotment option, Fruitas’ public float will be 28.2%.
The company earlier said it plans to use the proceeds from the IPO for network expansion and store improvements (59.4%), acquisition and introduction of new concepts (15.2%), debt repayment (15.2%), commissary expansion (5.1%) and food park business expansion (5.1%).
Fruitas booked a consolidated revenue of P1.58 billion in 2018, 37% up from a year ago on the back of higher sales from its stores nationwide.
In an investors’ briefing last week, the company said it is planning to expand its network of stores, increase same-kiosk sales growth, improve sales margins, introduce new concepts, acquire more food service brands and grow its food park business.
Fruitas set to be the fourth company to hold an IPO this year, following Kepwealth Property Phils, Inc. in August, and Axelum Resources Corp. and AllHome Corp. in October. — Denise A. Valdez