Balai Ni Fruitas redirects IPO proceeds to immediate expansion needs

LISTED counter-service bakery operator Balai Ni Fruitas, Inc. has reallocated proceeds from its July 2022 initial public offering (IPO) to fund its near-term expansion plans.

In a regulatory filing on Tuesday, the company said its board of directors approved the reallocation of IPO proceeds totaling P203.8 million.

The funds were previously earmarked for expanding its store network, setting up a commissary, and pursuing potential acquisition opportunities.

Under the revised allocation, the commissary setup fund was increased to P112 million from P110 million, while the allocations for store network expansion and store improvement were raised to P76.8 million from P73.8 million, sourced from the “Introduction of new concepts” and potential acquisitions.

“The management determines that such reallocation is necessary to fulfill its near-term requirements for expansion,” the company said.

Balai Ni Fruitas operates food and beverage brands including Buko Ni Fruitas, Fruitas House of Desserts, and Balai Pandesal. It is a wholly owned subsidiary of Fruitas Holdings.

Shares of Balai Ni Fruitas fell 2.99% to 0.325 centavos apiece on Tuesday. — Alexandria Grace C. Magno