Philippine F&B Kiosk Operator Fruitas Prices IPO, Trims Target To $20m

Fruitas Holdings Inc, a food and beverage kiosk operator in the Philippines, on Thursday priced its initial public offering (IPO) at 1.68 pesos per common share, trimming its size to 1.01 billion pesos ($20 million).

It was originally targeting to raise up to 1.2 billion pesos ($23 million) through the share sale.

The company said it agreed to price the issue at 1.68 pesos per share to ensure a “healthy performance of the stock upon listing.”

It is offering 533.66 million primary common shares with an over-allotment option of up to 68.34 million outstanding common shares in the IPO. The offer shares account for up to 28.2 per cent of the company’s total issued shares.

“Given the attractive pricing, we look forward to more participation from the general investing public investors,” said Daniel D. Camacho, Executive Vice President of First Metro Investment Corporation, one of the joint issue managers, lead underwriters, and bookrunners.

The lowered pricing comes a week after consumer tech firm Cal-Comp Technology (Philippines) decided for the second time to withdraw its planned $210-million IPO on the local exchange. The company cited lower valuations and volatile market conditions as the reasons for the deferment of its IPO.

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 the 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.