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A wholly owned subsidiary of publicly listed Fruitas Holdings Inc has filed for an initial public offering that could be worth up to P309 million.
In its registration statement filed with the Securities and Exchange Commission, Balai ni Fruitas plans to offer up to 325 million primary common shares and up to 50 million secondary common shares at an offer price of up to P0.75 each, with an over-allotment option of up to 37.5 million shares.
Net proceeds from the offer will be used to fund the company’s store network expansion, commissary set-up, and potential acquisition opportunities.
The offer shares will be listed and traded on the Small, Medium, and Emerging Board of the Philippine Stock Exchange.
Formerly known as Buko ni Fruitas, Balai Ni Fruitas Inc. is a wholly owned subsidiary of FHI. It started operations started on August 2005 when it opened its first Buko Ni Fruitas kiosk in Robinsons Manila, serving fresh coconut-based beverages and desserts.
Since then, Balai ni Fruitas has expanded to create and acquire new brands, including Buko Ni Fruitas, Fruitas House of Desserts, and Balai Pandesal. Each brand offers specialized products such as fruit-based beverages and desserts and freshly baked goods.
According to its prospectus, as of September 30, 2021, Balai ni Fruitas has a total of 69 stores across the Philippines, operating in three store formats: community store, kiosk, and inline store. The company currently has 37 BNF, 9 FHOD, and 23 BP stores, 91 percent (or 63 stores) of which are company-owned stores.
Balai ni Fruitas generated total revenues of P210.2 million, P233.2 million, and P110.1 million for the years ended December 31, 2018, 2019, and 2020 respectively, and net income (loss) of ?4.5 million, ?7.0 million, and (?0.9 million) for the same periods. It intends to raise funds from the IPO to expand its BP store network from 23 stores in September 2021 to 200 stores by 2026.
Balai ni Fruitas’s parent company FHI filed for IPO in 2019, raising over P1 billion. Besides Balai ni Fruitas, the company has over 20 brands in its portfolio, including Fruitas Fresh From Babot’s Farm, Buko Loco, Juice Avenue, Johnn Lemon, and Black Pearl. Fruitas also acquired Negril Trading, the company housing De Original Jamaican Pattie Shop and Juice Bar, in 2015 and the assets of Sabroso Lechon in 2018.
The company engaged First Metro Investment Corporation as the issue manager, bookrunner, and underwriter for the transaction.
