Top Line sets IPO price at P0.31 a share
Top Line Business Development Corp. will be the first to brave the stock market this year as it aims to raise P732.62 million from its initial public offering (IPO) next month.
In an advisory on Tuesday, the Philippine Stock Exchange Inc. (PSE) said the final offer price for the Cebu-based fuel retailer’s IPO was P0.31 per share. This is down from the maximum offer price of P0.38 each.
The offer involves 2.15 billion primary common shares, with an over-allotment option of up to 214.84 million secondary common shares.
In all, these represent a 22-percent stake in Top Line, which also has interests in real estate and ports.
Based on Top Line’s latest preliminary prospectus, the offer period will run from March 24 to March 31.
The company will list on the main board of the PSE on April 8 under the ticker “TOP.”
Top Line’s final IPO size is down from P3.12 billion previously as the Lim family-led conglomerate shifted its focus to importing fuel and boosting its retail portfolio in Central Visayas.
As a result of its downsized debut, Top Line dropped plans to build new fuel depots in Bohol and Mactan. These would have increased fuel capacity by 30 million liters from 5 million liters currently.
Use of proceeds
Instead, Top Line president and CEO Erik Lim said they would take P180 million from the IPO proceeds to buy new fuel tankers and at least double the company’s current capacity.
Around P300 million will be used to build retail fuel stations under the Light Fuels brand, while P270 million will be set aside as working capital.
At least P14.2 million will be spent for general corporate purposes.
Analysts also said Top Line’s reduced price was “expected,” especially since risk appetite was low under current market conditions.
Earlier this month, Lim told reporters they were in “advanced talks” with a strategic investor to boost their logistics capabilities.
Although he did not disclose other details, including how much equity the investor wanted in Top Line, Lim noted that they had shown “a lot of interest” in his company.
