Top Line hits market, raises P732.6M

Top Line Business Development Corp. made its public market debut on Tuesday, raising P732.6 million from an oversubscribed initial public offering (IPO) that will fuel its expansion across Central Visayas and boost its retail presence.

Trading under the ticker “TOP,” the Cebu-based fuel distributor listed 2.15 billion primary shares on the Philippine Stock Exchange (PSE) at P0.31 apiece, with an overallotment option of 214.84 million secondary shares.

The offer gives the company a 22 percent public float and marks the first IPO of the year and the first Cebu-based listing in nearly a decade.

Proceeds will fund the rollout of 20 new Light Fuels service stations — tripling its current footprint to 30 — and support vertical integration and fuel importation strategies to improve supply reliability in the region.

“While we acknowledge broader market challenges affecting investor sentiment both locally and globally, we are glad for our IPO’s oversubscription, receiving overwhelming support from our institutional and retail investors,” Top Line Chairman, President and CEO Erik Lapasaran Lim said. 

For PSE President and CEO Ramon S. Monzon, Top Line’s listing “gives the company a seal of good housekeeping in terms of good governance, regulatory compliance, and implicit transparency of management.”

“Since listing dates are milestones, it is understandable that there are investors who put a lot of importance on their stock's performance on its stock market debut. But as I said many times, an IPO is not the be-all or end-all of a company's existence. It is just the beginning,” Monzon said.

The Investment & Capital Corporation of the Philippines served as the Issue Manager, Joint Lead Underwriter, and Joint Bookrunner for the IPO, with PNB Capital and Investment Corporation also acting as Joint Lead Underwriters and Joint Bookrunners.