CEBU-BASED fuel retailer Top Line Business Development Corp. (Topline) has set a target date of Nov. 15 for its initial public offering (IPO), with plans to raise up to P3.16 billion.
Topline intends to offer up to 3.68 billion primary common shares, with an additional overallotment option of up to 368.31 million secondary common shares, at an indicative price of up to P0.78 per share, the company said in a statement on Sunday.
The company has submitted a registration statement and listing application to the Securities and Exchange Commission and the Philippine Stock Exchange (PSE) in connection with its planned IPO.
The proposed offer period is scheduled from Oct. 28 to Nov. 5.
According to the prospectus dated Aug. 2, Topline has appointed Investment & Capital Corp. of the Philippines as the issue manager, joint lead underwriter, and bookrunner for the IPO.
The company said it intends to use the proceeds from the offer for its “vertical expansion initiatives, working capital, and general corporate purposes.”
“With our accelerating growth in recent years in the fuel sector of the Visayas region, we are poised for the company’s historic milestone of listing on the PSE,” said Eugene Erik C. Lim, Topline’s chairman, president, and chief executive officer.
The PSE expects to have six IPOs for 2024. Three companies have conducted IPOs so far, one of which is a mining company while the other two are energy companies.
For the first half, Topline’s net income increased to P60.6 million from last year’s P20.8 million. The company’s gross revenues grew by 15% to P1.56 billion.
“Earnings from our commercial fuel trading boosted our sales in the first half with robust fuel demand in Metro Cebu and Cebu Province,” Mr. Lim said.
Topline’s commercial fuel trading operations cater to customers with requirements of at least 4,000 liters per order in transportation, construction, shipping, and mining, among others.
The company expects two fuel service stations to open this month, on track to meet its target of 10 operating service stations this year.
“Our expansion in the retail fuel market will further support our vertical integration plans, supporting Topline’s continued growth,” the company executive said. — Sheldeen Joy Talavera
