Balai ni Fruitas Inc., a subsidiary of leading food and beverage kiosk chain operator Fruitas Holdings Inc., plans to raise up to 309 million pesos from an initial public offering (IPO) in the first quarter of 2022.
Building 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 increase option of 37, 5 million secondary ordinary shares, at a maximum price of P0. .75 each.
This equity agreement is expected to bring 27.6 percent of Balai’s ownership into public hands.
Subject to Securities and Exchange Commission and Philippine Stock Exchange (PSE) approvals, Balai plans to launch the offering in March 2022. The goal is to be on the board of directors of small, medium and emerging companies. PES before the end of the first quarter of 2022.
“We have evaluated several options for raising capital to finance Balai’s next phase of growth. Considering the significant growth prospects of the bakery industry, separate from the kiosks within Fruitas Holdings, we have decided to undertake an IPO for Balai. This will provide Balai with its own resources to take advantage of the opportunities presented to it, ”said Lester Yu, president and CEO of Balai and Fruitas, in a disclosure to the PES on Monday.
“The main product will be used to expand Balai’s store network in major cities in the Philippines and establish its own commissary to serve more customers. Some of the new capital will also be used to explore the possibility of acquiring other bakery products businesses to expand the company’s current product offering, ”added Yu.
Balai currently operates three brands: Balai Pandesal, which sells baked goods in community stores across neighborhoods and central business districts; and Buko ni Fruitas and Fruitas House of Desserts, both of which sell fruit-based desserts in high-traffic locations including malls and malls.
First Metro Investment Corp. (FMIC) has been appointed program manager, bookrunner and underwriter for the IPO. FMIC was also an issues manager and underwriter for the P1 billion IPO of parent company Fruitas in 2019.
—Doris Dumlao-Abadilla INQ
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