Fruitas initial public offering oversubscribed — underwriter

The upcoming initial public offering of Fruitas Holdings Inc. has received strong interest from local investors, with the IPO nearly three times oversubscribed,  one of the underwriters handling the deal said over the weekend.

BDO Capital and Investments Corp. president Eduardo Francisco said in a text message the take up of the Fruitas IPO had been strong during the offering period, with demand exceeding the offer of P1 billion worth of shares despite current market conditions.

Fruitas, a leading food and beverage kiosk operator, offered 533.66 million in primary shares with an over-allotment option of up to 68.34 million in secondary shares at a price of P1.68 apiece.

The shares accounted for 28.2 percent of the company’s total issued stocks.

The company is scheduled to list the shares under the main board of the Philippine Stock Exchange on November 29 under the ticker symbol “FRUIT.”

The company plans to use the proceeds from the IPO to fund store network expansion and improvement, acquisitions, new concept introductions and debt repayment.

The company opened its first “Fruitas” Fresh From Babot’s Farm product in SM Manila in 2020.

It owns over 900 profitable stores across the Philippines and in prime commercial establishments and institutions.

Since its establishment, the company has expanded its brand portfolio to include Buko Loco, De Original Jamaican Pattie Shop and Juice Bar, Juice Avenue, Johnn Lemon, Black Pearl, Buko Ni Fruitas, and Fruitas Ice Candy.

The company continues to make a name in the industry with its growing number of outlets, expansions through acquisitions, and development of new business concepts and formats such as food parks and wine cellars.

From 2020 to 2022, it plans to add between 550 and 650 company-owned stores. It  plans to improve current stores and purchase delivery vehicles.

Fruitas plans to acquire other foodservice businesses or introduce new concepts in the Philippines to accelerate store expansion.   

Fruitas is fourth to conduct an IPO this year. Other companies that went public this year were Kepwealth Property Philippines Inc., Axelum Resources Corp. and AllHome Corp. of the Villar Group.

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