Fruitas to reallocate IPO proceeds for debt repayment

Food and beverage kiosk operator Fruitas Holdings Inc. (FHI) will reallocate proceeds from its maiden offering to reduce the company's debt level moving forward.

In an emailed statement, FHI said the board last week approved the reallocation of some of the proceeds of its P1.2-billion initial public offering (IPO) conducted last year.

"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 foodservice businesses and introduction of new concepts which have a strategic fit with our operations," Fruitas President and CEO Lester Yu said last year.

On Monday, FHI said the new allocation will be as follows:

• P470 million for store network expansion and store improvement (including P147 million for the 2020 store network expansion and improvement);
• P40 million for commissary expansion;
• P135 million for acquisition opportunities and introduction of new concepts;
• P175 million for debt repayment.

"The P25 million allocated for expansion of foodpark business will be re-allocated to repayment of the Group’s debt," said FHI.

"Since there is no immediate funding requirement for its foodpark business, the Company’s Board decided to re-allocate the funds to further reduce the debt level of the Group, which will also reduce its interest expense," it added.

FHI currently operates two food parks in Quezon City — Uno Cinquenta along Maginhawa, and Le Village The Lifestyle Park along E. Rodriguez St.

It also has over 20 brands in its portfolio, including brands such as Fruitas Fresh From Babot’s Farm, Buko Loco, Juice Avenue, Buko Ni Fruitas, Johnn Lemon, and Black Pearl. –KBK, GMA News