After successfully raising roughly 1 billion pesos ($20 million) in its initial offering last month, Philippines-based food and beverage kiosk operator Fruitas Holdings Inc confirmed that it will allocate about 150 million pesos ($2.6 million) to acquire food firms this year and in 2020.
In a disclosure to the Philippine Stock Exchange, Fruitas confirmed reports that it is in the final stages of completing an acquisition of a food service business and targets to complete it within the year. It is also looking at two more food companies to acquire in the next few months.
“The number of acquisition targets being evaluated by the group has increased since the completion of our IPO,” the company said, adding that the acquisitions can come in the form of acquisition of shares or assets of the targets, Fruitas said.
The company also announced that it seeks full utilisation of the acquisition budget as early as 2020 and could augment the amount using internally generated cash and other funding sources.
Founded in 2002, Fruitas has grown to over 900 stores all over the country and over 20 brands in its portfolio. The statement showed that the group has aggressively expanded from more than 400 stores as of end of 2016 to 949 stores as of Jun 30, 2019.
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.
The company originally targeted to raise up to 1.2 billion pesos ($23 million) through a share sale but trimmed the size of its IPO to “ensure a healthy performance of the stock upon listing”. Underwriters said the IPO was three times oversubscribed.
Fruitas was trading at 1.44 pesos a share Monday morning, down from 1.68 pesos when it started trading on November 29.