Balai ni Fruitas offering (IPO) in order to expand its shop network

18 February 2022

Balai ni Fruitas said in its prospectus that it wanted to raise P281 million to expand its shop network, open commissaries, and possibly buy other baked goods companies around the country.

Fruitas Holdings Inc.’s wholly-owned subsidiary Balai ni Fruitas filed a registration statement with the Securities and Exchange Commission on Thursday in an attempt to go public.

Balai ni Fruitas said in its prospectus that it wanted to raise P281 million to expand its shop network, open commissaries, and possibly buy other baked goods companies around the country.

“The Company’s long operational history, together with the parent company’s, has enabled BALAI create a loyal client base,” it claimed in its prospectus. “The Company’s current presence is concentrated in Metro Manila, but BALAI also wants to expand in provincial areas moving forward.”

At a price of 0.75 per share, the Fruitas entity will sell 325 million primary common shares and up to 50 million secondary common shares.

It has a 37.5 million share over-allotment option if investor interest is strong.

According to the prospectus, the majority of the revenues from the IPO, projected to be P220.4 million net, would be utilized to expand the company’s shop network. Balai ni Fruitas plans to open more stores, mostly along highways, in Metro Manila and other cities in Luzon, Visayas, and Mindanao.

Balai ni Fruitas now has 69 locations across the country. Fruitas House of Desserts became the one-stop shop for healthy desserts, fresh fruit shakes and juices, boba shakes, and milk tea.

The promotion will run from March 16 through March 22. On March 30, Balai ni Fruitas will go public on the Philippine Stock Exchange.

Following its acquisition of Balai Pandesal in June 2021, the food and beverage company entered into the baked goods industry. Balai ni Fruitas provided 10% of Fruitas’ total revenues in September of last year after being fully integrated.