Balai ni Fruitas makes weak debut

SHARES of food and beverage kiosk operator Balai ni Fruitas Inc. failed to fly on its first day of trading on the Philippine Stock Exchange (PSE) on Thursday due to market jitters.

Balai’s stock price lost 5 centavos to close at P0.65, down from its offer price of P0.70.

The benchmark PSE index fell 147.76 points to close at 6,155.43 points on Thursday.

In his welcome remarks, PSE President and CEO ramon S. Monzon said the initial public offering (IPO) of Balai is both “significant and symbolic” as it is the third listing on the bourse’s Small, Medium and Emerging (SME) Board this year.

“Balai’s listing is significant because it broadens the mix of companies listed on the SME Board. It will be the first food and beverage company to join the SME Board. Balai’s listing is also symbolic because it proves that the exchange can be accessible to SMES for their capital raising requirements,” Monzon said.

Balai was able to raise P289 million in capital, the bulk of which will be utilized for store network expansion as the company eyes the addition of 120 new stories by 2024 in Metro Manila and other urban areas all over the country. Portions of the fund will also be used to set up a commissary and for potential acquisitions.

“The brand familiarity and affinity certainly earned the confidence of local small investors based in 30 provinces and countries like Japan, Morocco, Singapore, and the UAE [United Arab Emirates] who subscribed to Balai’s IPO,” Monzon said.

“I would like to remind entrepreneurs that the PSE has a Listing and Engagement Assistance Program or

LEAP. Through LEAP, the exchange offers a free handholding program to guide companies, especially SMES, in the ins and outs of equity funding and assist them to have a carefully planned and prepared IPO.”