Fuel distribution play: PSE oks P3.16-B Top Line IPO
Fuel pump. AP file photo
Lim family’s fuel distributor Top Line Business Development Corp. is all set for a P3.16-billion initial public offering (IPO) this month after getting approval of the Philippine Stock Exchange, making it the first Cebu-based firm to debut on the local bourse after seven years.
In a statement on Thursday, the PSE said Top Line would offer up to 3.68 billion primary shares for up to P0.78 each. It also has an over-allotment option of up to 368.31 million shares in case of high demand from investors.
READ: Cebu-based fuel retailer secures SEC okay for November IPO
Top Line’s IPO, the fourth this year, is tentatively scheduled on Nov. 27 to Dec. 3, with listing set on Dec. 12 under the ticker symbol “TOP.”
”Doing an IPO is a big step for companies aiming for growth and expansion,” PSE president and CEO Ramon Monzon said.
Article continues after this advertisement“We are pleased that the equities market can support Top Line’s business strategy by providing access to the capital it needs to accelerate its development, which is crucial in solidifying its position in the industry,” Monzon added.
Article continues after this advertisementTop Line plans to build fuel depots in Mactan, Cebu province and in Bohol province with a combined capacity of 30 million liters.
Use of proceeds
Apart from this, proceeds from the IPO will be used to purchase fuel tankers and tank trucks, and construct 10 light fuel service stations as part of the company’s expansion plans, the PSE said.
Top Line will be the first Cebu-based company to list since 2017, when Soberano-led developer Cebu Landmasters Inc. went public and raised P2.9 billion.
Top Line president and CEO Erik Lim previously told the Inquirer that an IPO was the “best way to accelerate expansion.”
Founded in 2013, Top Line is currently engaged in commercial fuel trade and distribution, port operations, real estate and renewable energy.
Its first-semester earnings nearly tripled to P60.6 million on strong sales from its fuel trading business, which caters to customers requiring at least 4,000 liters per order.
Revenues likewise expanded by 15 percent to P1.56 billion.
