Cebu-based fuel retailer Top Line Business Development Corp. is doubling down on its home market in Central Visayas, reaffirming that it will not seek expansion outside the region in the medium term. Its growth strategy is centered on capitalizing on the region’s strong economic performance and increasing fuel consumption that outpaces the national average.
Eugene Erik C. Lim, Top Line chairman, president, and CEO, said the company sees “plenty of room for growth” in the region, particularly in Cebu province, which has experienced a 9 percent increase in fuel consumption. He noted that Central Visayas, with a combined economy worth P1.38 trillion, continues to offer untapped and underserved markets the company intends to address first.
“We’re focusing on markets in Central Visayas where we can expand our footprint. Once we have fully maximized this potential, then we will consider expanding beyond our home base,” Lim said in a recent interview.
A study commissioned for Top Line by the University of Asia and the Pacific highlighted the region’s robust economic growth, with Central Visayas’ GDP increasing by 7.46 percent year-on-year in 2023, outperforming the national growth rate of 5.5 percent. The region, which includes Cebu, Bohol, Negros Oriental, and Siquijor, now represents 6.45 percent of the country’s total GDP, making it the largest regional market outside Luzon.
Fuel demand in Cebu has also surged, with diesel consumption rising 8.75 percent to 542.7 million liters in 2022, up from 499 million liters in 2021. Top Line has been quick to capitalize on this increase. The company reported a 59 percent jump in diesel sales in 2023, reaching 56.2 million liters, compared to 35.4 million liters in 2022.
This rapid growth is reflected in Top Line’s compound annual growth rate (CAGR) of 49 percent in revenue from 2021 to 2023. Lim attributed the company’s success to a strong management team focused on cost competitiveness and customer service.
“In our meetings with investors, we’ve emphasized our results-driven approach and our rapid growth trajectory. Our upcoming IPO will help fund our vertical integration strategies in Central Visayas,” Lim said.
Top Line plans to raise as much as P3.16 billion from its initial public offering (IPO), which will run from 27 November to 3 December, with shares priced up to P0.78 each. The company will list on the Philippine Stock Exchange on 12 December under the ticker symbol “TOP.”
Proceeds from the IPO will be used to fund key expansion projects, including the construction of fuel depots in Mactan and Bohol, with a combined storage capacity of 30 million liters, as well as the purchase of additional fuel tankers and tank trucks. The company also plans to build 10 more Light Fuels service stations in the region.
Investment and Capital Corp. of the Philippines and PNB Capital and Investment Corp. serve as the joint lead underwriters for the IPO.
Founded in 2017, Top Line operates a retail fuel distribution network through its brand Light Fuels. It has become a key player in Central Visayas, with a clear focus on tapping into the region’s growing demand for fuel while expanding its market share.
