Balai ni Fruitas IPO bags SEC nod

MANILA, Philippines — Corporate regulators announced they have cleared the planned maiden share sale of Balai ni Fruitas Inc., which is looking to raise cash to fund its store network expansion plans.

In a statement on Wednesday, the Securities and Exchange Commission said it approved on Tuesday Balai’s application for a P309.8-million initial public offering that covers 1.49 billion common shares.

Balai is the baked goods subsidiary of listed food and beverage kiosk operator Fruitas Holdings Inc. Formerly “Balai Pandesal”, the company was acquired by Fruitas back in June 2021. After the acquisition, Balai contributed 10% to Fruitas' total revenues in September last year.

Under the IPO plan, Balai will sell to the public 325 million primary shares at P0.75 each.

Net proceeds from the sale of primary shares — about P220.4 million — will go to store network expansion and potential acquisition, among others. Balai’s current footprint is concentrated in Metro Manila.

Balai’s offer also includes the sale of 50 million secondary shares, proceeds from which will all go to its parent firm Fruitas, the selling shareholder.

If investor interest proves strong, the Fruitas unit may sell 37.5 million more shares to satisfy the robust demand.

The IPO will run from June 17 to 21 based on the timetable the company submitted to the SEC. Once it debuts on the Philippine Stock Exchange on June 29, Balai’s shares will be listed on the Small, Medium, and Emerging Board.