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Cebu-based fuel retailer secures SEC okay for November IPO
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Cebu-based fuel retailer secures SEC okay for November IPO

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Another Cebu-based company is inching closer to a Philippine Stock Exchange (PSE) debut after the Securities and Exchange Commission approved the P2.87-billion initial public offering (IPO) of fuel retailer Top Line Business Development Corp.

In a statement on Wednesday, the corporate regulator said it gave the green light to Top Line’s registration during a meeting on Oct. 8.

The company will offer up to 3.68 million shares at P0.78 apiece. In case of strong demand, 368.3 million in secondary common shares would be offered for sale.

The IPO comes at an opportune time, with investors slowly returning to the stock market amid prospects of more rate cuts. After a tepid start to the year, the Philippine Stock Exchange Index (PSEi) entered a bull run last month, breaching the 7,400 level. For a market to be considered in bull territory, it must have risen by at least 20 percent from a recent low.

Top Line’s offer period will be on Nov. 6 to Nov. 12. Listing is scheduled for Nov. 22.

The company is estimated to secure P2.75 billion from the transaction. Proceeds will be used for the construction of fuel depots and service stations and purchase of fuel tankers and tank trucks, among others.

Investment & Capital Corp. of the Philippines and PNB Capital and Investment Corp. are the joint lead underwriters and bookrunners for the IPO.

The Lim family-owned Top Line, launched in 2013, has interests in commercial fuel trade and fuel distribution in Cebu province.

The company intends to spend P210 million this year to build nine new fuel service stations in Metro Cebu, two of which will cater to a niche market: motorcycles.

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In the first half, Top Line nearly tripled its earnings to P60.6 million on strong sales from fuel trading business in the transportation, construction, shipping and mining sectors.

Top Line’s listing comes seven years after Cebu-based Cebu Landmasters Inc. launched its IPO.

This is set to be the fourth market debut this year after OceanaGold (Philippines) Inc., NexGen Energy Corp. and Citicore Renewable Energy Corp.

PSE expects to see up to P40 billion raised from at least six IPOs this year.


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