Fruitas Holdings Inc. said Wednesday its board approved realigning the use of initial public offering proceeds to fund acquisitions.
Fruitas said in a disclosure to the stock exchange the board resolved to increase to P153.66 million from P135 million the IPO budget for acquisitions and the introduction of new concepts.
The additional funds were sourced from lower IPO expenses and an unused portion of the proceeds previously allocated to the acquisition of property. A portion of the IPO proceeds initially allocated to commissary expansion was also re-channeled for planned acquisitions.
Fruitas raised P820 million from its maiden offering in December 2019. The bulk of the proceeds was used to fund store expansion and debt repayment.
Fruitas has been aggressive with acquisitions since its IPO as it intends to replicate the success of past acquisitions, Sabroso Lechon De Original, Jamaican Pattie Shop and Juice Bar.
The company purchased SoyKingdom Inc., the privately held corporation carrying The Tofu Store brand and specializing in soybean-related products and Filipino cuisine stall operator Kuxina in 2020.
It ventured into the bakery business with the acquisition of Balai Pandesal Corp. the following year.
Fruitas took over the 72-year-old Ling Nam restaurant chain this year as part of its strategy to venture into the dining business.
Fruitas, owned by businessman Lester Yu, is a leading food and beverage kiosk operator. The group operates more than 1,000 stalls across 20 brands.
It has managed to expand and widen its store network primarily through acquisitions.
Fruitas earlier reported a net income of P29 million in the first half, a turnaround from the P9 million net loss recorded in the same period last year as revenues climbed 50.2 percent to P787 million from P524 million.
The share price of Fruitas fell 2.9 percent Wednesday to close at P0.99.