Top Line Business Development Corp. launched its week-long initial public offering (IPO) on Monday, aiming to sell 22 percent of the Cebu-based company to raise approximately P624.6 million. The funds will primarily be used to expand its fuel distribution operations.
The company plans to allocate P300 million for the construction of 20 new service stations under its Light Fuels brand and P180 million for the purchase of fuel tankers. The remaining P134.6 million will be directed towards working capital, with P10 million earmarked for general corporate purposes.
The Securities and Exchange Commission (SEC) approved Top Line’s registration of common shares on Friday and granted it a permit to sell. The company will offer 2.37 billion primary common shares, including 214.9 million shares to accommodate excess demand. The offer price is set at P0.31 per share.
The IPO offer period will end on March 31, with Top Line scheduled to list on the Philippine Stock Exchange under the symbol “TOP” on April 8.
Erik Lim, chairman of Top Line, expressed excitement about the company’s IPO. “As the first company from Cebu to list in almost a decade, we are thrilled to reach this milestone. We thank the SEC and PSE for their support. This listing is crucial for our continued expansion and part of our strategy for vertical integration to sustain our rapid capital growth,” he said.
The Investment & Capital Corporation of the Philippines is serving as issue manager, joint lead underwriter, and joint bookrunner for the IPO, with PNB Capital and Investment Corp. also acting as joint lead underwriters and bookrunners.
J. Mariano Ocampo, senior managing director of Investment & Capital Corporation, expressed confidence in Top Line’s growth potential. “With strong leadership and a strategic vision, we’re excited to see Top Line take this major step toward its PSE listing,” he said.
Gerry B. Valenciano, president and CEO of PNB Capital, highlighted Top Line’s potential in the fuel industry, especially with the company’s strong presence in Central Visayas and its focus on the growing motorcycle market.
