Balai ni Fruitas slashes IPO share price to P0.70

BALAI ni Fruitas, Inc. announced on Tuesday a 6.7% cut in the price of its initial public offering (IPO) shares to P0.70 apiece from P0.75 previously, resulting in a reduction in the size of its market launch.

In the latest advisory posted by the Philippine Stock Exchange (PSE), the food and beverage company, a unit of listed holding firm Fruitas Holdings, Inc., did not disclose the reason for the reduction.

Balai ni Fruitas will offer up to 412.5 million common shares, consisting of 325 million primary shares to be offered and issued by the company; 50 million secondary shares to be offered by Fruitas Holdings, the selling shareholder; and up to 37.5 million option shares to be offered by the selling shareholder.

The final offer price brings down the IPO size to P288.75 million from P309.38 million had it retained the previous price.

In its preliminary prospectus posted last month, Balai ni Fruitas placed its IPO share price at P0.75. It said the offer price had been determined after taking into consideration the prospects, the market prices for shares of companies engaged in similar businesses, and prevailing market conditions.

The company will list on the Small, Medium and Emerging (SME) Board of the PSE under the trading symbol BALAI. It has secured the nod of both the PSE and the Securities and Exchange Commission (SEC) for the IPO.

“We are on track to have the most number of SME Board listings in a year with the IPO of Balai ni Fruitas. The company’s debut will also expand the mix of SME firms listed as Balai is the first food and beverage business to list on this Board,” PSE President and Chief Executive Ramon S. Monzon said in an earlier statement.

Proceeds from the IPO will be used for store network expansion, commissary setup, and potential acquisition opportunities.

According to the latest timetable, the shares will be sold from June 17 to 23 with a temporary listing date of June 29.

The company tapped First Metro Investment Corp. as issue manager, bookrunner, and underwriter for the offer.

Balai ni Fruitas is a food and beverage company that offers coconut-based beverages and desserts through brands such as Buko ni Fruitas, Fruitas House of Desserts, and Balai Pandesal. It is a wholly owned subsidiary of Fruitas Holdings.

Fruitas Holdings serves as the holding company of food and beverage kiosk operators. It has more than 25 active brands in its portfolio.

In 2021, Fruitas Holdings entered the baked goods industry through the acquisition of Balai Pandesal assets in June by its unit Balai ni Fruitas. The asset acquisition included initial inventories, technical know-how, equipment and vehicle, trademark, and franchise agreements for five stores.

Balai ni Fruitas was able to grow the Balai Pandesal store network to 31 community stores by the end of December last year. The network covers 25 company-owned and six franchised stores, all of which were accomplished within six months after the acquisition. — Luisa Maria Jacinta C. Jocson