Cebu-based fuel retailer Top Line Business Development Corp. (TOP) is gearing up for a major capital-raising drive after shareholders approved the reclassification of 800 million unissued common shares into preferred shares. 

In a stock exchange report on Tuesday, the listed firm confirmed that its Board also green-lighted private placements, follow-on offerings, or debt issuances at its Special Stockholders’ Meeting on 2 December.

“Our growth trajectory is clear and compelling. The issuance of preferred shares provides investors with steady returns through fixed dividends, while allowing us to strengthen our balance sheet and accelerate our vertical integration strategy. We intend to undertake capital-raising activities, targeting next year,”  TOP chairman, president, and CEO Eugene Erik Lim said. 

The funds will bankroll TOP’s direct fuel importation through subsidiary Topline Logistics and Development Corp. (TLDC) to secure better pricing, stabilize supply, boost margins, and drive efficiency across its fuel operations. 

The company also plans to expand depot infrastructure and storage capacity to handle higher import volumes.

Likewise, the move is set to fuel the growth of TOP’s retail arm, Light Fuels Corp. (LFC), as it expands across the Visayas and targets greater market share.

“These initiatives aim to enhance operational efficiency, reduce landed cost and overall operating costs, and improve our profitability and ultimately create greater long-term value for our shareholders,” Lim said. 

“We are confident that this direction places Top Line in a stronger strategic position, one that allows us to integrate vertically, capture more value from the supply chain, and deliver higher margins and more resilient income streams,” he added. 

In the first nine months, TOP posted a 21 percent rise in net income to P109.57 million, on gross revenues of P3.09 billion, up 26.9 percent.

LFC saw revenue surge 152 percent to P132.08 million, with volumes up 168 percent to 2.73 million liters. Commercial fuel sales rose 24.2 percent to P2.96 billion, with volumes climbing 32.8 percent to 68.74 million liters.