Manila, Philippines – Balai ni Fruitas Inc. (BALAI), a wholly-owned subsidiary of Fruitas Holdings Inc. (Fruitas Holdings), is set to file a registration statement with the Securities and Exchange Commission (SEC) for an up to Php309 million initial public offering (IPO) to support BALAI’s store network expansion, commissary setup, and to fund future acquisitions.
BALAI acquired certain assets of Balai Pandesal Corporation in June 2021 and since the acquisition, has increased the number of Balai Pandesal outlets from 5 to 23 as of end-September 2021. The range of Balai Pandesal baked goods is also currently available through Babot’s Mart, Fruitas Group’s online delivery portal for all its brands. BALAI is targeting to expand across the Philippines to 100 Balai Pandesal outlets by end of 2022 and 150 Balai Pandesal outlets by end of 2023.
BALAI intends to issue up to 325 million primary common shares in its IPO. The Board of Fruitas Holdings also approved its participation in the BALAI IPO by selling up to 50 million secondary common shares of BALAI to increase the IPO size and public float of BALAI. Fruitas Holdings will also provide an over-allotment option of up to 37.5 million secondary common shares of BALAI. The maximum price for the BALAI IPO has been set at Php0.75 per share. The public float after the offer can reach 27.6% of BALAI’s total issued shares if the over-allotment option is fully exercised.
The IPO of BALAI is subject to compliance with requirements of the (SEC) and the Philippine Stock Exchange (PSE) and obtaining approvals of the SEC and PSE. Subject to regulatory approvals and market conditions, BALAI plans to run the offer period in March 2022, and targets to list on the PSE's SME board before the end of the first quarter of 2022.
"We evaluated several capital-raising options to fund the next phase of growth of BALAI. Given the significant growth prospects of the bakery sector, distinct from the kiosks within Fruitas Holdings, we decided to undertake an IPO for BALAI. This will provide BALAI its own resources to take advantage of the opportunities presented to it,” said Mr. Lester Yu, BALAI and FRUITAS President and Chief Executive Officer. “The primary proceeds will be used to expand BALAI’s store network in major Philippine cities and establish its own commissary to serve more customers. Part of the new capital will also be utilized to explore the possibility of acquiring other baked goods firms to broaden the company’s current product offerings,” Mr. Yu added.
“The BALAI IPO will also be beneficial for Fruitas Holdings shareholders as it unlocks the value of BALAI. Fruitas Holdings will also remain as the controlling shareholder of BALAI and continue to benefit from profits of BALAI," said Mr. Yu. BALAI currently operates three brands: Balai Pandesal, which sells baked goods in community stores throughout neighborhoods and central business districts, Buko ni Fruitas, and Fruitas House of Desserts, which both sell fruit-based desserts in high-traffic locations including malls and commercial centers. As of end-September 2021, in addition to its 23 Balai Pandesal outlets, there are also a combined 46 Buko ni Fruitas and Fruitas House of Desserts outlets.
First Metro Investment Corporation has been appointed as the issue manager, bookrunner, and underwriter for the BALAI IPO. |
A registration statement relating to these securities will be filed with the Securities and Exchange Commission. These securities may not be sold, nor offers to buy them be accepted prior to the time the registration statement is rendered effective. This press release shall not constitute an offer to sell or be considered a solicitation to buy.
Fruitas Holdings Inc., listed on the Philippine Stock Exchange under the symbol FRUIT, is the leading operator of small-footprint food and beverage retail stores in the Philippines. From a single Fruitas stall opened in 2002, the group now operates over 25 brands in its portfolio, which includes well-loved food concepts Fruitas Fresh from Babot’s Farm, De Original Jamaican Pattie, Johnn Lemon, Juice Avenue, Black Pearl, SHOU La Mien Hand-Pulled Noodles, and Sabroso Lechon. It recently launched Fruitas dairy-based ice cream and the Soy & Bean soy product line, including Soy & Bean soy-based ice cream, and is opening a number of Babot’s Farm, Soy & Bean and Balai Pandesal community stores. For more information, visit: http://fruitasholdings.com/
Balai ni Fruitas Inc. is a wholly-owned subsidiary of Fruitas Holdings, Inc. Since the asset acquisition of Balai Pandesal, the Company has grown its bakery network from 5 to 23 as of September 2021. The company has 3 well-loved brands in its portfolio, which includes Balai Pandesal, Buko ni Fruitas, and Fruitas House of Desserts. For more information, you may visit: http://balainifruitas.com/. |