Top Line Business Development Corp. (Top Line) has reduced its indicative initial public offering (IPO) price from up to P0.78 per share to P0.38 per share — cutting its valuation in response to discussions with potential institutional investors.

The Cebu-based fuel retailer said on Wednesday that the revised IPO structure will lower the minimum public float from 30 percent to 20 percent.

Top Line will now offer up to 2.15 billion primary common shares and an overallotment option of 214.84 million secondary shares, potentially raising approximately P900 million at the new offer price.

If the overallotment option is fully exercised, public ownership will increase to about 22 percent.

Goal scaled down

Previously, Top Line intended to offer up to 3.68 billion primary common shares, along with an over-allotment option of up to 368.31 million secondary shares. The IPO was initially projected to raise P2.75 billion in net proceeds, based on the original indicative price of up to P0.78 per share, pending a book-building process.

Top Line chairperson, president and CEO Erik Lim explained that the adjustments reflect the company’s evolving capital needs while ensuring regulatory compliance.

“We appreciate the interest shown by potential investors in supporting our expansion and growth. As such, we’ve adjusted our offer structure to reflect our adjusted capital requirements and, at the same time, maintain regulatory compliance,” Lim said.

Originally scheduled for 27 November to 3 December with a listing initially planned for 13 December 2024, Top Line’s debut on the Philippine Stock Exchange will be moved to the second quarter, pending regulatory approvals.