THE Philippine Stock Exchange (PSE) has given Cebu-based fuel retailer Top Line Business Development Corp. (Topline) approval to proceed with an initial public offering (IPO).
Topline, which earlier this month secured Securities and Exchange Commission approval, is planning to sell up to 3.68 billion primary shares, with an overallotment option of as much as 368.31 million shares, from November 27 to December 3, 2024.
The shares will be priced at a maximum of P0.78 apiece, with the final offer price to be determined on November 18 after book-building is completed.
Listing on the PSE’s main board, under the ticker symbol TOP, has been tentatively scheduled for December 12.
“Doing an IPO is a big step for companies aiming for growth and expansion,” PSE president and Chief Executive Officer Ramon Monzon said in a statement.
“We are pleased that the equities market can support Topline’s business strategy by providing access to capital it needs to accelerate its development, which is crucial in solidifying its position in the industry,” he added.
Topline is aiming to raise up to P3.16 billion at the maximum offer price, with net proceeds to be used to build fuel depots in Mactan, Cebu and in Bohol, purchase fuel tankers and tank trucks, and construct additional ten light fuels service stations.
Based on a preliminary prospectus, Topline will use P980 million for the construction of the fuel depots in Mactan and Bohol that will have a combined storage capacity of 30 million liters.
Start of construction is planned for next year and the depots are expected to be operational by mid-2026.
Top Line will also develop 10 light fuel service stations starting in 2025, which are intended to be operational by 2025-2026.
Two units of compartmentalized fuel tankers with a capacity of 5 million liters, along with 40 tank trucks with rated capacities of at least 20,000 liters, will also be purchased to complement the firm’s fuel logistics platform.
Meanwhile, P937.5 million of the net proceeds will be allocated for working capital.
Be the first to comment