Food and beverage kiosk operator Fruitas Holdings Inc. said Monday it will reallocate a portion of the proceeds from its initial public offering to fund land acquisitions and site expansion.
Fruitas said in a disclosure to the stock exchange Monday that P165 million of the P470 million it initially allotted for store network expansion and store improvement would be re-allocated for site expansion and acquisitions.
Frutias said it would use P20 million from the IPO proceeds to acquire a 1,328-square-meter site of its coconut water commissary in Quezon City which is under lease.
It will also rechannel P145 million from the IPO proceeds for the acquisition its head office in Sta. Mesa, Manila. The five-story building has a net floor area of at least 2,000 sq. m.
The site is strategically located in a busy commercial area. Fruitas said the excess space would be leased out to potential tenants.
The final terms of the acquisition of the properties are subject to negotiation.