Fruitas Holdings, Inc. has acquired a new business—the Heat Stroke Grill with two branches in Quezon City. The acquisition is already completed and the listed company is now ready to take this in its line of businesses this year. As of now, there is no other relevant information about the grilling company and the value of the deal. The only thing Fruitas disclosed is that it was a tenant in the food parks it operates. The company will make this an anchor locator in its upcoming food parks. Also, it is a big contributor to the portfolio of the firm including Sabroso Lechon and the rice meal concepts.
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Fruitas said that it has a vision for the Filipino food market. Grilled food is one of the major components of the daily diet of Filipinos and it’s evident in the offerings in key commercial establishments. The company estimated that over 200 branches of the three major players in the market exist. In relation to this, the firm is about to spend P600 million for its expansion, logistics, and store improvements this 2020. There would be around P820 million budget for capital expenditure. Some of this will come from the P1 billion proceeds from the initial public offering and internally generated cash.
Fruitas was listed in the Philippine Stocks Exchange on November 29, 2019. If you try to list down all the companies that conducted an initial public offering (IPO), Fruitas was the fourth, next to Kepwealth Property Phils, Inc., AllHome Corporation, and Axelum Resources Corporation. On the other hand, the hospital unit of Metro Pacific postponed its offering because of the appearance of a major investor who funded the business segment. Fruitas was happy with the result of the debut as the broker tranche was more than 2.5 times oversubscribed. The positive feedback from the public investors fluttered the company.
From the result of the listing, it could be noted that the public investors gave exceptional positive responses. This signifies that the public believes in what Fruitas is capable of. Investors believe in the strong fundamentals and aggressive expansion plans of the company. Also, the slowdown of inflation helped a lot in this making. The company is convinced that the higher consuming spending played an important role. The success of the debut of Fruitas wouldn’t happen if not for the investors who waited and bought shares. Let’s see how this one goes!