Top Line all set to launch P898-M IPO

Cebu-based fuel retailer Top Line Business Development Corp. is set to make its stock market debut next month with the launch of an P898.05-million initial public offering (IPO), proceeds from which are earmarked to boost fuel importation and retail expansion.

In its latest IPO prospectus, the Lim family-owned company said the offer period would run from March 24 to 31. Listing date is targeted on April 8.

The transaction involves an initial offer of up to 2.15 million primary common shares with an overallotment option of up to 214.84 million secondary common shares for as much as P0.38 per share.

Pricing will be finalized on March 17.

The company estimated that net proceeds from the primary offer would reach P764.2 million.

Top Line is allocating P300 million for construction of service stations and P180 million for acquisition of a fuel tanker.

Expansion plans

The fuel retailer plans to build 20 fuel service stations, half of which will start construction within the year. The other 10 will be built next year.

Each fuel station is estimated to cost P15 million.

Meanwhile, the fuel tanker to be acquired has a capacity of 5 million liters, doubling its fuel storage capacity.

“Moreover, the tanker ship should allow Top Line to transport liquid fuel products directly to its leased depots, providing more flexibility in fuel supply as the company will be able to source its products from more suppliers,” the company added.

Some P270 million will go to working capital while the remaining P14.2 million is earmarked for general corporate purposes.

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

The Securities and Exchange Commission approved the transaction in October last year.

Top Line, launched in 2013, has interests in commercial fuel trade and fuel distribution in Cebu province.