CEBU-based fuel retailer Top Line Business Development Corp. (Topline) has received approval from the Philippine Stock Exchange (PSE) for its planned initial public offering (IPO) worth up to P3.16 billion.
Top Line’s initial offering will consist of 3.68 billion primary shares and an over-allotment option of up to 368.31 million shares priced at up to 78 centavos each, the PSE said in an emailed statement on Thursday.
Based on a prospectus dated October 31, the offering period runs from November 27 to December 3, while the provisional listing date is December 12. The final price will be determined on November 18.
Top Line will be listed on the main board of the PSE and will trade via the ticker symbol “TOP”.
At the maximum offering price of 78 centavos, Top Line aims to generate P2.75 billion in net proceeds. The Company will not receive any proceeds from the over-allotment option.
The company will use the proceeds to build fuel depots in Mactan, Cebu and Bohol, which will have a combined storage capacity of 30 million liters.
Part of the proceeds will also be spent on the purchase of fuel tankers and road tankers, as well as the construction of ten Light Fuels filling stations.
Investment & Capital Corp. of the Philippines and PNB Capital and Investment Corp. were appointed as the joint lead underwriters and joint bookrunners for the offer.
“Doing an IPO is a big step for companies seeking growth and expansion. We are pleased that the stock market can support Top Line’s business strategy by providing access to capital it needs to accelerate its development, which is crucial to strengthening its position in the industry,” said PSE President and Chief Executive Officer Ramon S. Monzon.
Top Line started commercial fuel trading operations in 2017, mainly in Central Visayas. The company operates a retail distribution network through the Light Fuels gas station chain.
The company is scheduled for its fourth initial public offering this year, joining gold and copper mining company OceanaGold (Philippines), Inc., and renewable energy companies Citicore Renewable Energy Corp. and NexGen Energy Corp. Revin Mikhael D. Ochave