SEC OKs P1.5-B Top Line preferred share sale

The Securities and Exchange Commission (SEC) has cleared the preferred share offering of Top Line Business Development Corp., allowing the company to raise up to P1.5 billion from its initial tranche.

In a meeting on April 28, the SEC Commission En Banc rendered effective the registration statement covering the shelf registration of up to 150 million preferred shares.

The preferred shares are classified as perpetual, cumulative, non-voting, non-participating, non-convertible, redeemable and reissuable. They will be offered in one or more tranches.

For the initial tranche, the listed commercial fuel trading company will offer up to 10 million preferred shares, with an oversubscription option of up to 5 million shares.

The shares will be priced at P100 each, with Cebu-based Top Line expecting to net around P1.47 billion in case of fully-exercised oversubscription option.

Proceeds from the offering will be used for working capital, depot construction or renovation, alongside other general corporate expenses, according to the regulator.

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The offer period is scheduled from May 19 to June 1, with listing on the main board of the Philippine Stock Exchange targeted on June 11.

Top Line has tapped PNB Capital and Investment Corp. as sole issue manager. It will also act as joint lead underwriter and bookrunner with Security Bank Capital.