Philippine F&B Kiosk Operator Fruitas Gets PSE Nod For $23m IPO

The Philippine Stock Exchange (PSE) has approved the initial public offering (IPO) plan of Fruitas Holdings Inc (Fruitas), a food and beverage kiosk operator, which seeks to raise up to 1.2 billion pesos ($23 million).

The approval clears the way for Fruitas to list its shares on the local market on November 29, according to a statement. The company will offer up to 533.66 million shares with an overallotment option of up to 68.34 million shares at a maximum price of 1.99 pesos each.

The offer period will run from November 18 to 22. Fruitas has appointed BDO Capital & Investment Corp. and First Metro Investment Corporation as joint issue managers, joint bookrunners, and joint lead underwriters for the offering.

Founded in 2002, Fruitas has over 900 stores across the country and over 20 brands in its portfolio, including household names such as Fruitas Fresh From Babot’s Farm, Buko Loco, Juice Avenue, Buko Ni Fruitas, Johnn Lemon and Black Pearl, and food parks such as Uno Cinquenta in Maginhawa and Le Village The Lifestyle Park in E. Rodriguez Sr., both situated in Quezon City.

In 2018, Fruitas reported 1.58 billion pesos ($30.4 million) in consolidated revenue, a 37 per cent increase from its P1.15 billion ($30.5 million) revenue in 2017, which it said was driven by strong performance of its stores.

It intends to use the proceeds from the IPO to fund its store network expansion and improvement, acquisitions, expansion of its food park business, and debt repayment, among others.

Other F&B companies that are listed on the PSE are Jollibee Foods Corporation, Shakey’s Pizza, Max’s Group Inc, San Miguel Food and Beverage, and Century Pacific Food.

The filing could help revive the local market, which has long been considered Southeast Asia’s worst-performing bourse and fell 15 per cent last year.

Early this month, the PSE suffered another blow when Metro Pacific Investments Corp deferred a proposed $1.6-billion public offering of its hospital unit after raising $684.5 million by selling a 42.5 per cent stake to a consortium led by private equity firm KKR & Co.