Cebu-based Top Line Business Development Corp. has revised its offer price for its upcoming initial public offering (IPO), cutting it by 18 percent to P0.31 per share. This adjustment is meant to raise up to P729.74 million, a strategic move driven by current market conditions.
In a statement, the company said the reduced price still allows the pursuit of its growth objectives that include expanding its network of fuel stations and enhancing its logistics capabilities with additional fuel trucks and tankers. “We are also very pleased with the strong coverage of our books at this offer price and believe it presents significant upside potential for prospective investors,” Top Line said.
The company is offering 2.14 billion common shares, with an over allotment option of 214.84 million shares. This follows a prior price point of P0.38 per share. Top Line’s target listing date on the Philippine Stock Exchange (PSE) is set for 8 April this year.
Top Line has confirmed that it is in advanced discussions with a strategic investor intent on acquiring primary shares in the IPO. While specific details remain undisclosed, company chairman, president, and CEO, Erik Lim, said that the investor’s share purchase would not entitle them to a board seat. Lim further clarified the company’s focus for now is on expanding its operational network, particularly in its core fuel trade and retail market segments.
“We’re very happy with the 53 percent increase in net income over the past few years. Given our solid fundamentals, we believe the timing is right for our IPO,” Lim said. The company’s plans for the net proceeds include advancing its vertical integration strategy, enabling it to manage critical operations from sourcing to distribution.
The commercial implications of the reduced IPO price could enhance investor confidence, especially in light of the current market climate. With its strategic initiatives aimed at fueling long-term growth, Top Line is positioning itself to play a significant role in the local fuel industry and beyond.
