Bilyonaryo - Business

Fruitas ayaw umatras! Lester Yu going ahead with Balai IPO despite choppy market

Businessman Lester Yu’s Balai ni Fruitas is pushing through with its initial public offering plans despite the market turmoil but not after snipping off its offer price.
“The company agreed to price the issue at P 0.70 per share despite having the book well-covered at the maximum price for the benefit of future public shareholders of BALAI,” said the IPO underwriter, First Metro Investment Corp.
This means Balai will only raise up to P288.75 million, down 6.5 percent from its max target of P309 million.
Balai is the subsidiary of food and beverage kiosk operator Fruitas Holdings whose stock has tanked to P1.13 or 33 percent down from its IPO price of P1.68 in 2019.
Balai is offering to sell up to 412.5 million common shares (comprising 325 million primary shares and 50 million secondary shares currently held by selling Yu, plus an over allotment option of up to 37.5 million shares).
The shares will be listed on the small, medium, and emerging board of the PSE.
The IPO will run from June 17 to 23, with the shares expected to debut on the stock exchange on June 30.
Balai is braving a wild market which saw Northstar Meat Merchants Inc. of entrepreneur Anthony Ng defer its P4.5 billion IPO.
Net proceeds from the sale of Balai primary shares will be used to bankroll store network expansion, commissary setup and launch of new concepts as well as potential acquisitions.
Balai is looking to grow its pandesal store network by eight-fold from 23 in September last year to 200 by 2026.