Balai ni Fruitas, Inc., a wholly-owned subsidiary of publicly-listed Fruitas Holdings Inc., is planning to raise up to P309 million from its initial public offering.

Documents filed with the Securities and Exchange Commission show, the firm 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.

Balai said it plans to expand its Balai Pandesal store network from 23 stores in September 2021 to 200 stores by 2026 and to establish commissaries to serve more customers.

These funds will also be utilized to explore the possibility of acquiring other baked goods firms in the Philippines in order to broaden the Company’s current product offerings.

Balai, formerly known as Buko Ni Fruitas Inc., started operations in August 2005 when it opened its first Buko Ni Fruitas kiosk in Robinsons Manila serving fresh coconut-based beverages and desserts.

Since then, the Company has expanded to create and acquire new brands which have enabled Balai to become a reputable player in the Philippine food and beverage kiosk industry.

Currently, it has three active brands namely Buko Ni Fruitas (BNF), Fruitas House of Desserts (FHOD), and Balai Pandesal (BP). Each brand offers specialized products such as fruit-based beverages and desserts and freshly-baked goods.

As of September 30, 2021, the Company has a total of 69 stores across the Philippines, operating in three store formats – community store, kiosk, and inline store.

Currently, there are 37 BNF, 9 FHOD, and 23 BP stores, 91 percent (63 stores) of which are company-owned stores. These are all located in high-foot traffic areas and easily accessible by public transport such as malls, markets, and central business districts.

Balai’s products are also available through the Group’s e-commerce website, www.BabotsMart.com, and through online delivery platforms such as Foodpanda and Grabfood.

BNF serves fresh coconut-based beverages and desserts. As of September 30, 2021, it has a total of 37 kiosks and inline stores located across the Philippines.

Following the success of the BNF Brand, the Company launched the FHOD brand to expand its product portfolio to healthy desserts, fresh fruit shakes and juices, boba shakes, and milk tea. For the past nine years, the FHOD brand has grown to nine kiosk and inline store as of the end of September 2021.

In June 2021, BALAI further expanded its brand portfolio with the acquisition of BP which allowed the Company to venture into the baked goods industry. The BP acquisition also included initial inventories, technical know-how, equipment and vehicle, trademark, and franchise agreements for five stores.

The Company was able to grow the BP store network to 23 community stores, which includes 17 company-owned and 6 franchised stores within 3 months after the acquisition.

Moving forward, the Balai will mainly focus on expanding the network of BP stores. The Company may continue to open additional BNF and FHOD stores as opportunities arise.