PSE approves P309-M Balai IPO

Published May 27, 2022, 3:03 PM

by James A. Loyola

The Philippine Stock Exchange has also approved the planned initial public offering (IPO) by Balai ni Fruitas Inc. worth up to P309.38 million.

Balai ni Fruitas will offer to the public up to 325 million primary common shares priced at up to 75 centavos each.

Balai logo

The offer will also include up to 50 million secondary common shares currently held by selling shareholder Fruitas Holdings, Inc., plus an overallotment option of up to 37.5 million common shares.

The offer price will be set on June 14, 2022 and determined through a book-building process and discussions between the Company and the Issue Manager, Bookrunner and Underwriter.

The shares will be listed on the Small, Medium, and Emerging Board of the PSE. The IPO will run from June 17 to 23, with listing on the PSE scheduled for June 30.

Net proceeds from the sale of the primary shares is expected to amount to about P220.4 million, which the company will use for store network expansion, commissary setup, and introduction of new concepts and potential acquisitions.

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.

Meanwhile, assuming the oversubscription option is fully exercised, the selling shareholder can net up to P65.6 million from the sale of the secondary shares.

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.

These are all located in high-foot traffic areas and easily accessible by public transport such as malls, markets, and central business districts.

Balai’s products are also available through the Group’s e-commerce website, www.BabotsMart.com, and through online delivery platforms such as Foodpanda and Grabfood.

Moving forward, the Balai will mainly focus on expanding the network of BP stores. The Company may continue to open additional BNF and FHOD stores as opportunities arise.

 
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