Listed fuel distributor and retailer Top Line Business Development Corp. (TOP) has secured regulatory approval for a preferred shares offering worth up to P1.5 billion to build a fresh war chest for expansion less than a year after its market debut.
The company said Thursday that it won regulatory approval to raise up to P1.5 billion through a preferred shares offering.
The Securities and Exchange Commission (SEC) approved the sale of P1 billion in firm shares and up to P500 million in oversubscription shares. The company set initial dividend rates of 9.1325 percent for TOPA1 and 9.5981percent for TOPA2.
The proceeds will be used to expand fuel importation and storage operations as TOP pushes to strengthen its position across the fuel supply chain through vertical integration.
“We see this follow-on offering as a natural extension of the growth momentum we began with our initial public offering last year, as we continue to execute our vertical integration strategy and invest in infrastructure that strengthens our long-term competitiveness.
At the same time, we are strengthening Philippine energy security by ensuring reliable fuel access in the Visayas. We thank the SEC and the PSE for their continued support in Top Line’s growth story,” TOP chairman, president, and chief executive officer Eugene Erik Lim said.
TOP plans to use most of the proceeds for fuel importation requirements, including petroleum procurement and logistics costs, while up to P440 million will be earmarked for depot construction and upgrades that could add up to 40 million liters in storage capacity.
The offer period runs from 4 to 16 June, with the preferred shares scheduled to list on the Philippine Stock Exchange on 26 June.