Foodcart operator Fruitas Holdings Inc. announced a P100-million share buyback program after its stock price hit a 52-week low of P0.60 per share.
Fruitas said in a disclosure to the stock exchange Tuesday its board approved the creation and implementation of P100-million share repurchase program to buy back common shares from the open market.
It would implement the program for a year, subject to extension by the board.
“The objectives of the share buyback program are to enhance shareholder value and to manifest confidence in the company’s value and prospects through the repurchase of the common shares of the company and through the return of a portion of the company’s capital to its shareholders,” Fruitas said.
“The share buyback program will not involve any active and widespread solicitation from the stockholders and will be implemented in the open market through the trading facilities of the Philippine Stock Exchange,” it said.
The company said the share buyback would not affect any of the company’s prospective and existing projects and investments. It will use internally-generated funds to finance the program.
Based on the stock’s closing price of P0.61 as of Jan. 31, 2025, Fruitas said it could buy back 164 million common shares from the market.
This will reduce the company’s public float to 35.81 percent from 40.75 percent.
Fruitas recently ventured into roasted chicken segment, with the acquisition of a controlling stake in a company that operates popular Filipino brand Mang Bok’s in November 2024.
The company was listed in the local bourse in 2018 with an initial public offering price of P1.68 per share.
Jenniffer B. Austria
It serves as the holding company of food and beverage kiosk operators with more than 25 active brands under its portfolio.