Balai ni Fruitas Inc., the bakery chain of listed Fruitas Holdings Inc., plans to raise up to P309 million from an initial public offering in March.
Balai filed an application with the Securities and Exchange Commission to sell up to 375 million in primary and secondary shares with an over-allotment option for another 37.5 million shares. It is selling the shares at a maximum price of P0.75 apiece.
Balai plans to use the net proceeds from the offering to fund store network expansion, commissary set-up and potential acquisition opportunities.
Balai started operations in August 2005 when it opened its first kiosk serving fresh coconut-based beverages and desserts. In June, Fruitas acquired Balai which had only five outlets at that time.
It now 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.
Using proceeds from the maiden share offering, Balai plans to add 120 new stores by 2023 from 69 stores. The offer period was tentatively set on March 16 to March 22.
The shares will be listed on the small, medium and emerging board of the Philippine Stock Exchange on March 30.
The company tapped First Metro Investment Corp. as the issue manager, bookrunner and underwriter for the transaction.
Aside from Balai, other companies planning IPOs this year include Citicore Energy REIT Corp., Bank of Commerce, CTS Global Equities Group Inc. and Raslag Corp.