Philippines: Fruitas allocates $2.6m of IPO money for acquisitions

Photo from Facebook page of Fruitas.

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.