FRUITAS HOLDINGS, Inc. board has approved a share buyback program of up to P100 million to boost shareholder value, the company announced on Tuesday.
The proposed creation and implementation of the share buyback program for the company’s common shares secured board approval on Feb. 3, Fruitas said in a regulatory filing on Tuesday.
“The objectives of the share buyback program are to enhance shareholder value and to manifest confidence in the company’s value and prospects through the repurchase of the common shares and the return of a portion of the company’s capital to its shareholders,” Fruitas said.
As of end-2024, Fruitas has a 40.75% public float, equivalent to 869.38 million publicly owned shares.
Fruitas said the share buyback program could potentially acquire 163.93 million shares based on the company’s closing share price of 61 centavos apiece on Jan. 31.
Once the share buyback program is completed, Fruitas said its public float could drop to 35.81%, corresponding to 705.45 million publicly owned shares.
Fruitas has 2.13 billion issued, outstanding, and listed shares. The share buyback program could potentially reduce the company’s outstanding shares to 1.97 billion.
The share buyback program will have an initial term of one year, which could be extended upon approval by the company’s board, Fruitas said.
It added that the program will be implemented in the open market through the trading facilities of the Philippine Stock Exchange.
Fruitas said in early January that it had earmarked P500 million for its capital expenditure (capex) budget this year to support its expansion plans. The company aims to open 100 stores in 2025.
According to the company, 50% of the capex budget will be allocated for commissary infrastructure and logistics upgrades, 40% will be for store expansions, and 10% for brand acquisitions and development.
Fruitas shares rose by 11.67%, or seven centavos, to 67 centavos per share on Tuesday. — Revin Mikhael D. Ochave