BALAI ni Fruitas Inc. reported on Monday that it had disbursed some P51 million out of the proceeds of its initial public offering (IPO) to fund its business expansion in the last quarter of 2023.

In a regulatory filing, the company said it used the funds for store network expansion and improvement as well as commissary setup.

Balai, a wholly owned subsidiary of Fruitas Holdings Inc., made a successful debut on the Philippine Stock Exchange in June 2022, raising a total of P227.5 million from a public offer of 325 million common shares at 70 centavos each.

As of end-December 2023, the company said total disbursements of its IPO proceeds had reached about P96 million, with the remaining proceeds amounting to roughly P107.8 million.

In February, Balai reported that its board of directors authorized the realignment of IPO proceeds to increase the amount allocated for the commissary setup from P20 million to P60 million.

The reallocated funds were expected to help the bakery operator "expand capacity to serve increasing demand."

With the approved realignment of IPO proceeds, Balai was expected to disburse P123.8 million for store network expansion and improvement and P20 million for the introduction of new concepts and potential acquisitions.

"The Balai board approved the proposal of management, which noted that Balai has been able to expand distribution through placement of its products in other Fruitas Holdings community stores and third-party partnerships," it added.

The company, which operates Buko ni Fruitas, Fruitas House of Desserts, and Balai Pandesal, posted a nine-month net income of P41 million, up 77 percent from the previous year's P23 million, while consolidated revenues rose 65 percent to P387 million from P234 million previously.

Balai shares on Monday dropped by 2.35 percent to close at 41.5 centavos apiece.

Read The Rest at :