The proceeds will be used to fund our store network expansion across the Philippines and expand our commissary to serve more customers

Fruitas Holdings Inc. has submitted to the Securities and Exchange Commission (SEC) a registration statement for its planned P1.2-billion initial public offering (IPO), the proceeds from which it plans to use for expansion and debt repayment.

The kiosk operator behind beverage brand Fruitas said it plans to offer up to 533,660,000 primary common shares with an overallotment option of up to 68,340,000 outstanding common shares.

It will offer each shares for a maximum price of P1.99 apiece. Gross primary proceeds can amount to as much as P1.06 billion while the total maiden offering could reach P1.2 billion.

Once it completed the public offer, Fruitas’ public float, or the portion of the company available for investors, can reach up to 28.2 percent of its total issued shares, or higher than the mandated 10 percent.

“The proceeds will be used to fund our store network expansion across the Philippines and expand our commissary to serve more customers. New capital will also be used towards acquisition of food service businesses and introduction of new concepts which have a strategic fit without operations,” Fruitas president and chief executive officer Lester Yu said.

“We view the potential listing on the Philippine Stock Exchange as part of our growth journey and we are excited to have taken the first step by filing our registration statement,” he added.

The company is aiming to run the offer period from 18 to 22 November, with the listing date scheduled before the end of the year.

Fruitas mandated BDO Capital & Investment Corp. and First Metro Investment Corporation as joint issue managers, joint bookrunners and joint lead underwriters for the transaction.

For full year 2018, Fruitas booked a 27 percent increase in consolidated revenue to P1.15 billion on the back of strong performance from its stores.

From 400 stores as of end-2016, Fruitas’ aggressively expanded to 949 stores as of end-June, 2019. It currently has more than 20 brands under its wing, including Fruitas Fresh From Babot’s Farm, Buko Loco, Juice Avenue, Buko Ni Fruitas, Johnn Lemon, Black Pearl, and food parks Uno Cinquenta in Maginhawa and Le Village The Lifestyle Park in E. Rodriguez Sr. both located in Quezon City.

The company also acquired Negril Trading, the company housing De Original Jamaican Pattie Shop and Juice Bar, in 2015 as well as the assets of Sabroso Lechon in 2018.