MANILA, Philippines — Balai Ni Fruitas Inc., which is behind local bakery brand Balai Pandesal, has priced its initial public offering at P0.70 per share, lower than the earlier announced maximum price of P0.75 per share.
“The company agreed to price the issue at P0.70 per share despite having the book well-covered at the maximum price for the benefit of future public shareholders of Balai,” said Abigail Buenviaje, SVP and head of Products and Markets of First Metro Investment Corp, the sole issue manager, bookrunner and underwriter for the offering.
Balai is offering 325 million primary common shares with listed food kiosk operator Fruitas Holdings Inc., its 100 percent owner, selling another 50 million secondary common shares, to help meet minimum public ownership thresholds, as part of the base offer.
Also part of the offer is an over-allotment option of up to 37.5 million secondary shares held by Fruitas.
At P0.70 per share, Balai’s total IPO size is P288.75 million and pro forma market capitalization will be approximately P1.05 billion. Net proceeds, estimated at P203.8 million, will be used to fund its store network expansion, acquisitions and new concept introductions, and setup of commissaries.
The IPO allows the investing public to partake in 27.6 percent of the company’s issued shares which will be listed on the Small, Medium, and Emerging Board (SME) of the Philippine Stock Exchange.
The offer period is scheduled from June 17 to 23 in time for the listing of the company’s shares on June 30.
Since the acquisition of the Balai Pandesal assets in June last, the company has aggressively expanded to 31 stores as of Dec. 31, 2021 from just five stores previously.
The company recorded a net profit of P8.5 million last year on revenues of P148.9 million.
Balai has a total of 77 stores spread among the three brands namely Balai Pandesal, Buko ni Fruitas, and Fruitas House of Desserts as of end last year.