LISTED-COMPANY Balai ni Fruitas (Balai) is re-allocating the use of its initial public offering (IPO) proceeds to fund expansions for its store network expansion and store improvement.
In a disclosure to the local bourse on Monday, Jan. 22, 2024, the company’s board of directors agreed to increase the amount allocated for commissary setup from P60 million to P110 million.
The firm said the purpose of the additional allocation of IPO proceeds to the commissary setup is to reduce the need for further loans and help the company avoid interest expense for the N.Domingo Commissary Set Up.
The firm added that part of the increase in the allocation for commissary setup will also be used in the planned construction of the 162 square-meter Balai commissary located at 24 Naya Village, Tisa, Cebu City to expand the capacity for Balai Products in the Visayas. The new commissary to be built in Tisa, Cebu City, is expected to be completed within the year.