Cebu-based fuel distributor Top Line Business Development has kicked off its ₱733 million initial public offering (IPO) after securing its permit to sell from the Securities and Exchange Commission (SEC).
This approval allows Top Line to offer 2.15 billion primary common shares, with an overallotment option of up to 214.84 million secondary shares, representing a combined 22 percent ownership interest.
In late February, the Philippine Stock Exchange (PSE) issued a notice of approval, paving the way for the company’s common shares to be listed on the PSE Main Board.
The offer period for the IPO will run from March 24 to 31, 2025, with the listing on the PSE on April 8, 2025. The final offer price of ₱0.31 per share was determined by the market through a book-building process involving international and Philippine-based institutional investors.
“As the first company from Cebu to list in almost a decade despite Top Line being founded a little over a decade ago, we are glad to reach this significant milestone,” said Top Line Chairman, President and CEO Eugene Erik C. Lapasaran Lim.
He added that, “We thank the SEC and PSE for supporting us in our IPO journey. Our listing is a key step to our continued expansion as part of our vertical integration strategy to sustain our rapid capital appreciation.”
The Investment & Capital Corporation of the Philippines (ICCP) is the company’s Issue manager, joint lead underwriter, and joint bookrunner for the IPO, with PNB Capital and Investment Corp. as the joint lead underwriter and joint bookrunner.
“We believe in Top Line’s strong growth potential and its ability to deliver on its commitments. Throughout the IPO process, we have seen firsthand the company’s drive, passion, and strategic vision,” said ICCP Senior Managing Director Jesus Mariano Ocampo.
He noted that, “With strong leadership at the helm, we are excited to see Top Line take this significant step toward its listing on the PSE.”
PNB Capital President and CEO Gerry B. Valenciano added “With sustained gross profit margins over the years, Top Line is poised to thrive in the fuel industry, which remains an essential commodity for the foreseeable future.
“Leveraging its homecourt advantage in Central Visayas, the company is well-positioned to capitalize on rising fuel demand, particularly from its motorcycle niche market.”
Top Line expects to raise approximately ₱624.6 million in net proceeds from the primary offering to fund its expansion plans.
Lim said ₱300 million is allocated for the construction of 20 service stations under its Light Fuels brand, and ₱180 million is designated for the acquisition of fuel tankers, representing 48 percent and 28.8 percent of the net proceeds, respectively.
Following its final offer price, the adjustments were made in allocating its working capital at ₱134.6 million and general corporate purposes at ₱10 million, accounting for 21.6 percent and 1.6 percent of the net proceeds, respectively.
“We are fully committed to our IPO strategy, which focuses on integration, importation, and expansion to sustain our strong profit margins. This is why we are maintaining our allocation as initially mentioned for the construction of service stations and the acquisition of additional fuel tankers,” Lim added.