October 10, 2024 | 12:00am
MANILA, Philippines — The Securities and Exchange Commission (SEC) has cleared the initial public offering (IPO) of Top Line Business Development Corp. next month.
The Cebu-based fuel retailer intends to raise as much as P3.2 billion by offering up to 3.68 billion common shares with an overallotment option of up to 368.31 million secondary common shares at a maximum price of P0.78 apiece.
The proceeds from the sale of primary shares will be used to fund the construction of fuel depots and service stations, the acquisition of fuel assets, working capital and other general corporate purposes.
The company will not receive proceeds from the offer of secondary common shares owned by selling shareholders.
“This is a huge milestone for our company, reflecting our commitment to expansion and continued growth. Exciting times ahead for all of us at Topline and team,” Topline chairman, president and CEO Eugene Erik Lim told The STAR.
Based on the latest timeline submitted to the SEC, the offer period will run from Nov. 6 to 12, with listing on the main board of the Philippine Stock Exchange slated for Nov. 22.
The company has tapped Investment & Capital Corp. of the Philippines and PNB Capital and Investment Corp. as the joint lead underwriters and joint bookrunners for the transaction.
Topline’s planned IPO is poised to be the fourth this year after OceanaGold Philippines Inc., Citicore Renewable Energy Corp. and NexGen Energy Corp.
Topline, which started in the leasing and real estate business, has since ventured into commercial fuel trading, depot operations and retail fuel distribution in the Visayas region.
Its two subsidiaries are Light Fuels Corp., which is engaged in the fuel retail sector, and Top Line Logistics and Development Corp., which is envisioned to engage in the importation, trading, distribution and marketing of petroleum-based products.
Topline launched its first Light Fuels station in Mandaue in 2023 and pumped around P210 million to put up another nine – seven service and two express stations – within this year.
By next year, the company plans to expand into other areas of the Visayas region, including Bacolod and Iloilo.
In the first half, Topline saw its net income surge by 190 percent to P60.6 million as revenues accelerated by 15 percent to P1.56 billion.
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