Listed fuel distributor and retailer Top Line Business Development Corp. (TOP) has raised P1.5 billion from an oversubscribed follow-on offering of perpetual preferred shares, providing fresh capital to expand fuel importation and storage capacity as it bets on rising energy demand in the Visayas.
The Cebu-based company listed its Series A perpetual preferred shares on the Philippine Stock Exchange on Friday under the ticker symbols TOPA1 and TOPA2. The offering comprised P1 billion in firm shares and P500 million in oversubscription shares, reflecting strong investor appetite despite challenging conditions in the downstream oil industry.
TOPA1 carries an annual dividend rate of 9.1325 percent, while TOPA2 offers 9.5981 percent.
Proceeds will fund the company’s strategy to strengthen its vertically integrated fuel business. Up to P1 billion will be allocated for working capital tied to petroleum importation, including fuel procurement, shipping, and freight costs. At the same time, about P440 million will finance the construction and renovation of fuel depots with a combined storage capacity of up to 40 million liters. The balance will be used for general corporate purposes.
Chairman, President and CEO Erik Lim said the company remains focused on the long-term growth potential of the Visayas despite headwinds facing the fuel sector.
“With this successful offering, we intend to help address gaps in the Visayas fuel supply chain by ensuring that we have sufficient supply, storage capacity, and distribution capabilities to meet the region’s growing demand,” Lim said.
The capital raising underscores TOP’s strategy to expand beyond fuel retailing into importation and logistics, enabling it to capture higher margins while improving supply reliability. The additional depot capacity could also reduce dependence on third-party storage and strengthen the company’s competitive position in a region where fuel demand continues to outpace infrastructure development.
PNB Capital and Investment Corp. served as the sole issue manager, while Security Bank Capital Investment Corp. joined as lead underwriter and bookrunner.
