IPO-bound Cebu fuel retailer wants to cash in on motorcycle influx
A Cebu-based fuel retailer plans to debut on the Philippine Stock Exchange (PSE) as it seeks to corner the two-wheel vehicle market in the country’s second largest metropolis.
Erik Lim, president and CEO of Top Line Business Development Corp., told the Inquirer they planned to launch an initial public offering (IPO) “soon” and list on the main board of the local bourse.
“If you think about expansion, [an IPO] is the best way to accelerate,” Lim said during an interview. The CEO remained tight-lipped, however, on the timeline of their IPO.
The Lim family-owned Top Line, launched in 2013, has interests in commercial fuel trade and fuel distribution, among others, in Cebu province.
As of 2023, Lim said sales grew by 27 percent to P2.8 billion after Top Line subsidiary Light Fuels Corp. built its first fuel service station in Mandaue City.
The fuel station along AC Cortes Avenue caters to light four-wheel vehicles, such as sedans, and motorcycles.
According to Lim, they will particularly target the two-wheel vehicle market for expansion, noting that motorcycles account for 68 percent of vehicles in Central Visayas.
“Right now we’re still focused on Metro Cebu and Central Visayas because there’s still a lot of opportunities,” Lim said. “Particularly in Metro Cebu, we see that potential because there’s a niche market.”
Top Line, through Light Fuels, plans to spend P210 million this year to build nine new fuel service stations in Metro Cebu, two of which will cater to motorcycles.
“We’re not really setting apart from the giants, because they are already big. But we’re just catering to a certain segment of the market,” Lim said.
Affiliate businesses include Pier Eighty-Eight Ventures Inc. for port operations and management in the municipality of Liloan; Topline Properties and Development Corp. for real estate and ferry terminal construction; and Topline Energy and Power Development Corp. for renewable energy.
Top Line’s potential listing announcement comes seven years after another Cebu-based company, Cebu Landmasters Inc., braved the stock market.
The Soberano-led developer, which now plans to expand to Luzon, went public in 2017 and raised P2.9 billion.
The PSE has so far seen three IPOs this year, still short of its target of six as analysts warn that the volatile market could shoo away potential issuers.
