Fruitas subsidiary plans P309M IPO
MANILA, Philippines—Balai ni Fruitas Inc., a subsidiary of leading kiosk operator Fruitas Holdings Inc. is set to file an application to raise as much as P309 million through an initial public offering (IPO) to fund future growth.
Balai intends to offer up to 325 million primary common shares plus up to 50 million secondary common shares and an over-allotment option of up to 37.5 million secondary common shares at a maximum price of P0.75 per share.
This equity deal is seen to bring 27.6 percent of Balai’s ownership to public hands.
“We evaluated several capital-raising options to fund the next phase of growth of Balai,” said Lester Yu, Balai and Fruitas president and CEO, in a press statement on Monday (Dec. 27).
“Given the significant growth prospects of the bakery sector, distinct from the kiosks within Fruitas Holdings, we decided to undertake an IPO for Balai,” Yu said.
“This will provide Balai its own resources to take advantage of the opportunities presented to it,” he added.
“The primary proceeds will be used to expand Balai’s store network in major Philippine cities and establish its own commissary to serve more customers,” said Yu.
“Part of the new capital will also be utilized to explore the possibility of acquiring other baked goods firms to broaden the company’s current product offerings,” Yu added.
Balai currently operates three brands: Balai Pandesal, which sells baked goods in community stores throughout neighborhoods and central business districts, Buko ni Fruitas, and Fruitas House of Desserts, which sell fruit-based desserts in high-traffic locations, including malls and commercial centers. As of end-September, in addition to its 23 Balai Pandesal outlets, there are also a combined 46 Buko ni Fruitas and Fruitas House of Desserts outlets.
First Metro Investment Corporation has been appointed as the issue manager, bookrunner, and underwriter for the IPO.
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