MANILA, Philippines — Shares of Fruitas Holdings Inc. — one of the leading food stall operators in the country — opened higher on their stock market debut Friday, as the company seeks to raise funds to “aggressively” grow its business.
Shares in Fruitas opened P1.82 apiece versus the offer price of P1.68 each.
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As of 11:08 a.m., shares in Fruitas were trading at P2.26 apiece, up 34.52%. The main index was in the red.
The company offered 533,660,000 primary common shares with an over-allotment option of up to 68,340,000 outstanding common shares. Upon listing, Fruitas’ market capitalization will be at P3.6 billion.
Proceeds from the initial public offering will be used to fund Fruitas’ store network expansion and improvement, as well as acquisitions and new concept introductions and to reduce the company’s debt.
“Together with the IPO proceeds and strong cash generation of our operations, the listing will open up more opportunities for us to aggressively grow our business,” Fruitas President and CEO Lester Yu said.
Fruitas is targeting to add 250 stores annually until 2022. Its business has grown to over 1,000 stores across 24 active brands nationwide.