Top Line Business Development Corp. sought regulatory approval for a planned initial public offering that will value the Cebu-based fuel distribution company at P9.58 billion.
Top Line, led by the Lim siblings, now awaits the approval of the Securities and Exchange Commission and the Philippine Stock Exchange for its planned IPO that would raise as much as P3.16 billion to fund the company’s expansion plans, particularly in the settling up of a fuel retail network.
The company plans to offer in October up to 4.01 billion primary and secondary shares, including 368.3 million secondary shares for overallotment, equivalent to 30 percent in the company. The indicative offer price is up to P0.78 per share subject to a book building process. It expects to list on the PSE in November.
IPO proceeds will be used for depot construction, working capital, acquisition of trucks and tankers, and construction of service stations next year.
“With our accelerating growth in recent years in the fuel sector of the Visayas region, we are poised for the company’s historic milestone of listing on the PSE,” Erik Lim, Top Line chairman, president and chief executive officerE, said.
Top Line posted first half gross revenue of P1.56 billion, up 15 percent year-on-year. Net income in the first half nearly tripled to P60.6 million from P20.8 million last year.
“Earnings from our commercial fuel trading boosted our sales in the first half with robust fuel demand in Metro Cebu and Cebu Province,” Lim added.
Top Line’s commercial fuel trading operations caters to customers with requirements of at least 4,000 liters per order in transportation, construction, shipping, and mining, among others.
In terms of retail fuel under the Light Fuels brand, two new Light Fuels service stations are expected to open this month which will bring the Company’s total operating retail fuel stations to three.
“We are still set to meet our target of 10 operating service stations this year. Our expansion in the retail fuel market will further support our vertical integration plans, supporting Top Line’s continued growth,” Lim said.
Top Line, a 13-year-old company, is constructing five more Light Fuels service stations and two Light Fuels Express stations in Metro Cebu and Cebu province.The Light Fuels Express stations are meant to meet the needs of motorcycle riders and other lighter vehicles which are growing rapidly in terms of vehicle type usage in Metro Cebu.
Top Line has engaged Investment & Capital Corp. of the Philippines as issue manager, underwriter and book runner of the offer.
In May, its board set aside 30 percent of prior year’s net income for dividend payment.
