Top Line Business Development Corp., a fuel distribution company based in Cebu, is set to start a two-week book-building process for its initial public offering on Monday. It aims to raise around P2.9 billion to support its expansion plans.
Top Line intends to sell 4.05 billion shares, which includes 368.3 million secondary shares to accommodate excess demand, at a price of P0.78 each. The price could still change depending on the outcome of the book-building process. The proceeds from the sale of secondary shares will benefit the selling shareholders, not the company.
The Investment & Capital Corp. of the Philippines is overseeing the IPO, which is expected to be priced on November 18. The offer period will commence on 27 November and conclude on 3 December.
Shares of Top Line are tentatively scheduled to be listed on 12 December.
The majority of the IPO proceeds, estimated at around P1.4 billion, will be allocated towards constructing fuel depots in Cebu and Bohol over the next two years as well as to acquire fuel tankers and tank trucks. The depots will feature separate tanks for diesel, premium, and regular gasoline, boasting a total capacity of 30 million liters, with 25 million liters located in two lots in Mactan.
