Balai Pandesal files P309 million share sale

MANILA, Philippines — Balai ni Fruitas Inc. , a wholly owned subsidiary of listed Fruitas Holdings Inc. , has filed its registration statement for a P309 million initial public offering (IPO).

Balai is offering up to 325 million primary common shares and up to 50 million secondary common shares plus an over-allotment option of up to 37.5 million shares at a maximum price of P0.75 each.

This brings the total offering to 412.5 million shares for total proceeds of up to P309 million to be used for network expansion, commissary setup and for  future acquisitions.

Balai acquired certain assets of Balai Pandesal Corp. in June 2021 and since the acquisition, has increased the number of Balai Pandesal outlets to 23  as of end-September last year.

The company’s baked goods are available through Babot’s Mart, Fruitas Group’s online delivery portal for all its brands.

Balai is targeting to expand across the Philippines to hit 100 Balai Pandesal outlets by yearend and 150 branches by the end of 2023.

The board of Fruitas Holdings also approved its participation in the Balai IPO by selling up to 50 million secondary common shares of Balai.

Fruitas Holdings will also provide an over-allotment option of up to 37.5 million secondary common shares of Balai.  The public float after the offer can reach 27.6 percent of Balai’s total issued shares if the over-allotment option is fully exercised.

According to the registration statement, the offer period will run from March 16 to  22 and the listing will be on March 30.

Lester Yu, Balai and Fruitas president and CEO, said prospects for the bakery sector are strong given that bread is a staple food in the Filipino household.

“This will provide Balai its own resources to take advantage of the opportunities presented to it,” Yu said in an earlier disclosure.