Balai ni Fruitas Inc., a subsidiary of leading food and beverage kiosk chain operator Fruitas Holdings Inc. plans to raise as much as P309 million from an initial public offering (IPO) in the first quarter of 2022.
Building up its war chest for future growth, Balai intends to offer up to 325 million primary common shares and up to 50 million secondary common shares, including an option to upsize by as much as 37.5 million secondary common shares, at a maximum price of P0.75 apiece.
This equity deal is seen to bring 27.6 percent of Balai’s ownership to public hands.
Subject to approvals from the Securities and Exchange Commission and the Philippine Stock Exchange (PSE), Balai plans to run the offer in March 2022. The target is to list on the PSE’s small, medium and emerging board before the end of the first quarter of 2022.
“We evaluated several capital-raising options to fund the next phase of growth of Balai. Given the significant growth prospects of the bakery sector, distinct from the kiosks within Fruitas Holdings, we decided to undertake an IPO for Balai. This will provide Balai its own resources to take advantage of the opportunities presented to it,” Lester Yu, Balai and Fruitas president and CEO, said in a disclosure to the PSE on Monday.
“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. 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; and, Buko ni Fruitas and Fruitas House of Desserts, which both sell fruit-based desserts in high-traffic locations, including malls and commercial centers.
First Metro Investment Corp. (FMIC) has been appointed as the issue manager, bookrunner and underwriter for the IPO. FMIC was also an issue manager and underwriter for parent company Fruitas’ P1-billion IPO back in 2019.