Fuel distributor and retailer Top Line Business Development Corp. (TOP) is pushing to boost its market position and operational capabilities through a P1.5 billion follow-on offering of perpetual preferred shares.

The SEC-filed offering will comprise up to 10 million shares, with an oversubscription option of 5 million shares, at an indicative price of up to P100 per share, subject to regulatory approval.

“The preferred share issuance marks an important step in strengthening our capital base while providing stable returns for our investors through fixed dividends,” TOP Chairman, President, and CEO Eugene Erik Lim said on Monday.

“As we build on the momentum from our initial public offering last year, this fundraising will support our vertical integration strategy by enhancing supply chain capabilities, expanding our retail network, and improving procurement flexibility,” he added. 

Proceeds from the offering will be used to fund direct fuel importation through TOP’s subsidiary, Topline Logistics and Development Corp., supported by its recently established trading house in Singapore.

TOP also plans to expand its depot storage capacity to handle increased import volumes. These investments will complement the growth of Light Fuels Corp., the company’s retail fuel subsidiary, as it scales its station network.

“Through these initiatives, we aim to improve operational resilience, enhance margins, and deliver sustainable long-term value to our shareholders,” Lim added.

PNB Capital and Investment Corporation will serve as the sole issue manager, with Security Bank Capital Investment Corp. acting as the joint lead underwriter and bookrunner. 

The indicative offer period is scheduled from 19 May to 1 Jun, with dividends expected three months after issuance and paid quarterly thereafter.