Recently, Fruitas Holdings, Inc. has priced its initial public offering (IPO) at P1.68 per share. This is considered as the low-end of the indicative ranges it disclosed. According to the firm, the price was agreed upon in order to make sure that there would be a healthy stock performance upon listing of the stocks. With its affordable price, Fruitas, together with BDO Capital and First Metro Investment Corporation—the joint issue managers, lead underwriters, and bookrunners for the company’s IPO, are looking forward to more participation from the general investing public investors. Are you excited about this listing? We are too!
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Fruitas will start the offer period from November 18 until November 22. It will have 533.66 million shares on the table with an over-allotment option of up to 68.34 million shares. This will help the company raise up to P1.01 billion fund for the company. The maximum share price Fruitas disclosed was P1.99 per share and the fund could have been up to P1.2 billion if the company followed the maximum price. The schedules listing on the Philippine Stock Exchange will be on November 29 and will trade under FRUIT. It will have a public float of 28.2% if it maximizes the overallotment option.
The company is eyeing to generate at least P1.2 billion from the IPO. This will be utilized for its expansion plans, the introduction of new concepts, acquisitions, and debt repayment. From 400 stores at the end of 2016, Fruitas was able to build more stores to 949 by the end second quarter this year. Last year, its consolidated revenues went up by 37% to P1.58 billion because of strong sales from its stores. Some of the popular brands of Fruitas include Buko Loco, Buko Ni Fruitas, Fruitas Fresh From Babot’s Farm, Juice Avenue, Black Pearl, and John Lemon. It also owns Uno Cinquenta Food Park in Maginhawa and Le Village The Lifestyle Park in E. Rodriguez, Sr.
The firm is grateful for the clearance as it can do a better job with this IPO. It says that this will allow them to serve its products to more Filipino consumers, employ more people, source more raw materials, and of course, contribute to the growing economy of the Philippines. Expect that after this IPO, Fruitas will become more transparent with their plans for the company as it is not just private investors who will benefit anymore but the public as well. Truly, investors deserve to get to know more companies like this and eventually invest in them.