Fruitas targets to raise up to P1.2 billion from IPO

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FRUITAS Holdings, Inc. has more than 20 brands in its portfolio, including Fruitas Fresh From Babot’s Farm, Buko Loco, Juice Avenue, Johnn Lemon, Black Pearl, and Sabroso Lechon. — COMPANY HANDOUT

FRUITAS Holdings, Inc. looks to raise up to P1.2 billion from a maiden share sale by December, joining the roster of companies seeking to go public in 2019.

In a statement issued Monday, the food and beverage kiosk operator said it has filed a registration statement with the Securities and Exchange Commission (SEC) for the sale of up to 533.66 million common shares, plus an over-allotment option of up to 68.34 million common shares, at a maximum of P1.99 each.

This is equivalent to around 28.2% of the company’s total issued shares.

Fruitas expects to net up to P1.06 billion from the offering, which is set to finance its store expansion.

“The proceeds will be used to fund our store network expansion across the Philippines and expand our commissary to serve more customers,” Fruitas President and Chief Executive Officer Lester C. Yu said in a statement.


“New capital will also be used towards acquisition of food service businesses and introduction of new concepts which have a strategic fit with our operations.”

The company earlier said it wants to double its store network within the next five years.

Fruitas scheduled the offer period from Nov. 18 to 22, with listing at the Philippine Stock Exchange (PSE) before the year ends. However, this will depend on the company securing approvals from the SEC and PSE.

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

Founded in 2002 from a single food car in Manila, Fruitas already has a total of 949 stores by end-June. The company owns more than 20 brands such as Fruitas Fresh From Babot’s Farm, Buko Loco, Juice Avenue, Buko ni Fruitas, Johnn Lemon, and Black Pearl.

It also operates food parks in Quezon City, namely Uno Cinquenta in Maginhawa Street and Le Village The Lifestyle Park in E. Rodriguez Sr. Avenue.

Fruitas’ expansion over the years also led to the acquisition of Negril Trading, the company behind brands De Original Jamaican Pattie Shop and Juice Bar in 2015. It further bought the assets of Sabroso Lechon in 2018.

The company saw its consolidated revenues jump 37% to P1.58 billion in 2018, boosted by the performance of its stores.

Fruitas could be the sixth company to go public this year, following the IPO of real estate management firm Kepwealth Property Phils, Inc. in August. Axelum Resources Corp. (P7.695 billion) and AllHome Corp (P20.7 billion) will follow with their respective maiden offerings this October.

IPO applications pending with the SEC include Taiwanese firm Cal-Comp Technology (Philippines), Inc. and Metro Pacific Hospital Holdings, Inc., which target to raise up to P10.68 billion and P83.3 billion, respectively, before the end of the year. — Arra B. Francia