Top Line seeks raising P3.12B, mulls IPO

Fuel retailer Top Line Business Development Corp. (Top Line), a regional player based in Cebu, is making its way to the capital market as it guns to launch a maiden debut within the last quarter.

The company has filed a registration statement and listing application with the Securities and Exchange Commission (SEC) and The Philippine Stock Exchange Inc. (PSE), respectively.

Top Line’s planned initial public offering (IPO) will consist of 3,683,100,000 primary common shares with an overallotment option of up to 368,310,000 secondary common shares or a target of up to P3.12 billion in fresh capital.

The indicative offer price is up to P0.78 per share subject to a bookbuilding process.

The tentative offer period will be from 9 a.m. on 28 October to 5 p.m. on 5 November.

The IPO launch is subject to certain regulatory approvals.

“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 chairperson, president and CEO Erik Lim said.

Growth engine

In the first half, Top Line grew its net income by 190 percent to P60.6 million from P20.8 million in the same period a year ago.

The profit surge was fueled by the 15 percent increase to P1.56 billion in revenues, from P1.36 billion last year.

“Earnings from our commercial fuel trading boosted our sales in the first half with robust fuel demand in Metro Cebu and Cebu Province,” Lim said.

Top Line’s commercial fuel trading operations cater to customers with orders of at least 4,000 liters in transportation, construction, shipping, and mining, among other industries.

Meanwhile, two new Light Fuels service stations under the Light Fuels brand are expected to open this month, bringing the company’s total operating retail fuel stations to three.

Separately, the company is also building five more Light Fuels service stations and two Light Fuels Express stations in Metro Cebu and Cebu Province.

The company’s Light Fuels Express stations are designed to cater to the needs of motorcycle riders and other lighter vehicles, which are experiencing rapid growth in usage in Metro Cebu.

“We are still set to meet our target of having 10 operating service stations this year. Our expansion in the retail fuel market will further support our vertical integration plans, contributing to Top Line’s continued growth,” Lim said.