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Fruitas set to add 650 new stores until 2022

Fruitas Holdings Inc., one of the largest food and beverage kiosk operators in the country, plans to add between 550 and 650 company-owned stores from 2020 to 2022 using proceeds from a P1.2-billion planned initial public offering.

Fruitas said in a registration statement filed with the Securities and Exchange Commission, Fruitas it would spend P586 million, about 59 percent of the total IPO proceeds, mainly to open new stores, improve existing ones and purchase delivery vehicles.

Fruitas as of end June 2019 had a network of 949 stores across 20 brands, serving fresh fruit shakes and juices, lemonade, coolers, milk tea, desserts, meat-filled pastries and lechon (roasted pig).

Fruitas is also allotting P150 million to acquire other foodservice businesses or introduce new foodservice concepts in the Philippines to accelerate store expansion,  

“Our potential target acquisitions and new concepts must have a strategic fit with our current operations and must present opportunities for us to explore other business segments and add value to the new businesses using our existing competitive strengths,” Fruitas said.

The company plans to expand its food park business by building new or acquiring existing ones. 

It plans to open two new food parks from 2020 until 2021, mostly located in Metro Manila and other parts of Luzon.

“As opportunities arise, we may potentially lease suitable spaces in existing commercial establishments to operate our own food courts. We are still in the early stages of assessing potential sites and there are no definitive agreements signed,” the company said.

Fruitas plans to use part of the IPO proceeds to fund commissary expansion, and debt repayment.

Fruitas is offering up to 533.66 million in primary common shares with an over-allotment option of up to 68.34 million common shares at a maximum price of P1.99 each.

Subject to regulatory approvals, Fruitas is scheduling an offering period from November 18 to 22 and aims to list the shares before the end of the year.

The company named BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, joint book runners and joint lead underwriters of the offering.

Fruitas reported a net income of P100.3 million in 2018, down 42 percent from P172.9 million in 2017, while consolidated revenues stood at P1.58 billion, up 37 percent from P1.15 billion in 2017.

Topics: Fruitas Holdings Inc. , initial public offering , IPO
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