Balai ni Fruitas planning to raise $6.01 million from IPO

Net proceeds from the offer will be used to fund the company’s store network expansion, commissary set-up and potential acquisition opportunities

Balai ni Fruitas, Inc., a wholly-owned subsidiary of publicly-listed Fruitas Holdings Inc., is planning to raise up to P309 million ($6.01 million) from its initial public offering.

Documents filed with the Securities and Exchange Commission show, the firm plans to offer up to 325 million primary common shares and up to 50 million secondary common shares at an offer price of up to P0.75 ($0.015) each, with an over-allotment option of up to 37.5 million shares.

The offer period will last from March 16 to 22. Balai ni Fruitas will list on the Philippine Stock Exchange on March 30.

Net proceeds from the offer will be used to fund the company’s store network expansion, commissary set-up and potential acquisition opportunities.

The Company’s long operating history, together with the parent company, has helped BALAI develop a loyal customer base. The Company’s current footprint is concentrated in Metro Manila, but BALAI also intends to also expand in provincial areas going forward, it said in its prospectus.

Balai said it plans to expand its Balai Pandesal store network from 23 stores in September 2021 to 200 stores by 2026 and to establish commissaries to serve more customers.

These funds will also be utilized to explore the possibility of acquiring other baked goods firms in the Philippines in order to broaden the Company’s current product offerings.

Balai, formerly known as Buko Ni Fruitas Inc., started operations in August 2005 when it opened its first Buko Ni Fruitas kiosk in Robinsons Manila serving fresh coconut-based beverages and desserts.

Since then, the Company has expanded to create and acquire new brands which have enabled Balai to become a reputable player in the Philippine food and beverage kiosk industry.

Currently, it has three active brands namely Buko Ni Fruitas (BNF), Fruitas House of Desserts (FHOD), and Balai Pandesal (BP). Each brand offers specialized products such as fruit-based beverages and desserts and freshly-baked goods.

As of September 30, 2021, the Company has a total of 69 stores across the Philippines, operating in three store formats – community store, kiosk, and inline store.

Currently, there are 37 BNF, 9 FHOD, and 23 BP stores, 91 percent (63 stores) of which are company-owned stores.