Philippines’ Fruitas to buy Ling Nam restaurant with Balai IPO proceeds
The IPO raised some P203.8m in net proceeds.
Fruitas Holdings (FRUIT) is planning to acquire Ling Nam Wanton Parlor and Noodle Factory with the proceeds from the listing of its Balai ni Fruitas (BALAI).
The initial public offering of BALAI raised about P203.8m in net primary proceeds and gross proceeds of P35m for FRUIT.
“FRUIT is expected to book a one-time gain on the sale of existing shares in Balai ni Fruitas, which will result in an increase of its equity,” FRUIT said in a statement.
“Proceeds at the FRUIT level will be deployed into new strategic initiatives, including the acquisition of ‘Ling Nam Wanton Parlor and Noodle Factory since 1950’.”
The IPO was launched last 30 June. It took place about one year since FRUIT acquired assets of the Balai Pandesal business.
It has since expanded the Balai Pandesal brand to 30 stores, as of June 2022, from only 5 stores initially.
BALAI targets to expand its Balai Pandesal store network to 130 by 2023, and to 200 by 2026.
“The Company also targets to acquire or introduce value-adding concepts which would fit into its baked goods lineup,” FRUIT noted.
“The Company continues to look at significant opportunities within the more than US$6b baked goods segment in the Philippines.”