Fruitas Holdings Inc., a leading food and beverage kiosk operator, has priced its initial public offering at P1.68 per share.
The IPO price was reduced by P0.31 per share from the maximum price of P1.99 apiece set in the original prospectus.
“The company agreed to price the issue at P1.68 per share in order to ensure a healthy performance of the stock upon listing,” said BDO Capital and Investments Corp. president Eduardo Francisco said.
Fruitas will offer 533.66 million in primary shares with an over-allotment option of up to 68.34 million in secondary shares. The offering period will run from November 18 to November 22.
“Given the attractive pricing, we look forward to more participation from the general investing public investors,” said First Metro Investment Corp. executive vice president Daniel Camacho. BDO Capital and FMIC are the joint underwriters of the offering.
The company is scheduled to list its shares under the main board of the Philippine Stock Exchange on November 29 under the ticker symbol “FRUIT.”
Fruitas plans to use the proceeds from the IPO to fund store network expansion and improvement, acquisitions, new concept introductions and debt repayment.
The company over the past years has aggressively expanded from over 400 stores at the end of 2016 to 949 as of June 30, 2019.
Fruitas plans to add between 550 and 650 company-owned stores from 2020 to 2022. It also plans to improve current stores and purchase delivery vehicles.
Fruitas is looking to acquire other foodservice businesses or introduce new foodservice concepts in the Philippines to accelerate expansion.
Fruitas has over 20 brands in its portfolio, including household names like Fruitas Fresh From Babot’s Farm, Buko Loco, Juice Avenue, Buko Ni Fruitas, John Lemon and Black Pearl.
It plans to expand its food park business by building new food parks or acquiring them.