Philippines’ food brand BALAI goes public
The IPO raised P203.8m.
Philippine firm Fruitas Holdings (FRUIT) has publicly listed its subsidiary Balai ni Fruitas (BALAI), raising about P203.8m in net primary proceeds for BALAI.
“The listing opens more opportunities for us to be nimble and respond to our customers’ evolving preferences,” Balai ni Fruitas Inc. President and CEO Lester Yu said.
“The IPO proceeds and the Company’s strong cash generation from our operations will allow us to aggressively grow our business.”
The initial public offering (IPO) also generated a minimum gross proceeds of P35m for FRUIT.
Proceeds at the FRUIT level will be used to fund strategic initiatives, including the acquisition of Ling Nam Wanton Partlos and Noodle Factory since 1950.
The company is also eyeing to buy or introduce value-ading concepts as well as continue to look at opportunities within the more than US$6b baked goods segment in the Philippines.
BALAI has so far expanded its Balai Pandesal brand to a 38 store network, as of June 2022, from only 5 stores at the time of acquisition. It plans to raise this to 130 by 2023, and to 200 by 2026. BALAI Pandesal products are also offered in 54 FRUIT’s store network.
“In evaluating opportunities in other segments, the Company will remain disciplined in evaluating key financial criteria, including profitability, and working capital requirements,” the company said in a statement.