Fruitas IPO 3x oversubscribed, underwriter says

MANILA, Philippines — Investors gobbled up shares of food and beverage kiosk operator Fruitas Holdings Inc., BDO Capital & Investment Corp. president Ed Francisco said yesterday.

BDO Capital and First Metro Investment Corp. are the joint issue managers, joint bookrunners and joint lead underwriters for the initial public offering of  Fruitas.

“We’re very happy for the last IPO for the year. The deal is around three times oversubscribed,” Francisco said.

Fruitas will make its debut at the Philippine Stock Exchange on Friday, Nov. 29.

It is the fourth IPO to list in the market for the year, braving the prevailing volatility in the equities market.

“It’s a reflection of support for good names like Fruitas despite global uncertainties,” Francisco said.

The company targets to raise P1.2 billion from the sale of up to 533.66 million shares including an over-allotment option of up to 68.34 million outstanding common shares. The shares are priced at P1.68 per share.

Fruitas founder and chief executive officer Lester Yu said with the IPO, the company would be able to expand along with the growth of the Philippine economy.

“The IPO will allow us to serve our products to more Filipinos, source more raw materials, employ more people and contribute to the growth of the Philippine economy.” Yu said.

Proceeds will be used to fund store network expansion across the Philippines and expand its commissary to serve more customers. New capital will also be used to acquire other brands in the food service businesses.