Balai ni Fruitas Inc. said Monday its board approved the re-allocation of part of the proceeds from its initial public offering to avoid incurring additional loans to build its commissary.
Balai said the budget for commissary set up was increased to P110 million from P60 million, with the additional P50 million from the budget earmarked for store network expansion and store improvement.
“The purpose of the additional allocation of IPO proceeds to commissary set up is to reduce the need for further loans and help the company avoid interest expense for the N. Domingo Commissary Set Up,” the company told the Philippine Stock Exchange.
It said part of the increase in the allocation for commissary construction will also be used in the proposed construction of the162-square meter Balai Commissary in Cebu City to expand the capacity of Balai products in the Visayas. The proposed commissary in Cebu City is seen completed within the year.
