Cebu-based fuel retailer Top Line Business Development Corp. (Topline) is launching its P3.16 billion initial public offering before the year ends to be the last maiden offering at the Philippine Stock Exchange for 2024.
The PSE said it has approved the firm’s IPO tentatively slated for Nov. 27 to Dec. 3, 2024 with target listing set for Dec. 12, 2024 on the Main Board of the Exchange. Its shares will be traded using the ticker symbol TOP.
Top Line will offer up to 3.68 billion primary shares and 368.31 million over-allotment option shares priced at up to P0.78 apiece. The final offer price will be determined on Nov. 18, 2024, after the completion of its book-building exercise.
“Doing an IPO is a big step for companies aiming for growth and expansion. We are pleased that the equities market can support Topline’s business strategy by providing access to capital it needs to accelerate its development, which is crucial in solidifying its position in the industry,” said PSE President and CEO Ramon S. Monzon.
Topline plans to use the proceeds from its IPO to build fuel depots in Mactan, Cebu and in Bohol that will have combined storage capacity of 30 million liters, purchase fuel tankers and tank trucks, and construct additional ten light fuels service stations using the proceeds to be generated from the maiden offering.
The two fuel depots will be equipped with terminal for receiving and deliveries. There will be separate tanks for diesel, premium and regular gasoline fuels.
The main storage in Mactan will have a capacity of 25 million and will serve as the receiving facility for the imported supplies while the Bohol storage will serve as a satellite depot that will ensure the availability of stocks in the surrounding region.
Construction of these fuel depots will commence within 2025 and be operational by mid-2026. The Company will allocate P980.0 million for these depots.
Meanwhile, the construction of the 10 Light Fuels service stations will commence by 2025 and is intended to be operational by 2025 – 2026 at a cost of P65 million.
To ensure the faster movement of supply from the main storage to the satellite depot, and to the other customers, Top Line will invest P300 million to acquire two units of compartmentalized fuel tankers with a capacity of 5.0 million liter for each vessel.
To complement further the fuel logistics platform, the Company will also invest P160 million to acquire 40 units of tank trucks with rated capacities of at least 20,000 liters. The acquisition of tank trucks will take place between 2024 and 2025.
There will also be a requirement for P937.5 million in working capital to fund the supply of stocks that will be sourced from the local and imported supplies. These supplies will be temporarily stored in the fuel depots to ensure the reliability of supply at any given time.
“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,” Top Line’s Chairman, President and CEO Erik Lim, said.