The Securities and Exchange Commission said Wednesday it approved the P309-million initial public offering of Balai ni Fruitas Inc., a wholly-owned subsidiary of listed food and beverage kiosk operator Fruitas Holdings Inc. led by businessman Lester Yu.
Balai received the SEC approval on he offering of 325 million primary common shares priced at a maximum of P0.75 each. The offering will include 50 million secondary common shares held by shareholder Fruitas Holdings, plus an over-allotment option for another 37.5 million common shares.
The shares will be listed on the small, medium and emerging board of Philippine Stock Exchange Inc.
The net proceeds from the sale of the primary shares is expected to reach P220.4 million, which the company will use for store network expansion, commissary setup and introduction of new concepts and potential acquisitions.
The company had 69 stores as of end-September 2021. Using the proceeds from the IPO, the company plans build 120 new stores until end of 2023.
Balai has three active brands including Buko Ni Fruitas , Fruitas House of Desserts and Balai Pandesal.
Yu said that despite the volatile equities market, the company would push through with its maiden share offering.
“It is just a small offering, and what we are offering is considered essential,” Yu said.
The IPO will run from June 17 to 21, with listing on the PSE scheduled on June 29, according to the latest timetable submitted to the SEC.
The company hired First Metro Investment Corp. as the sole issue manager, bookrunner and underwriter for the offering.
Other companies that recently secured regulatory approvals for IPO are Raslag Corp., North Star Meat Merchants Inc. and VistaREIT Inc.
Ovialand Inc. and Upson International Corp. are waiting for the regulator’s approval of their respective offerings.
