Top Line applies for P1.5-B preferred stock offering
Cebu-based fuel retailer Top Line Business Development Corp. is targeting to raise fresh capital of up to P1.5 billion to strengthen its importation and trading operations.
In a statement on Monday, the company said it had filed its registration statement with the Securities and Exchange Commission for the offer and sale of up to P1 billion worth of 10 million perpetual preferred shares.
If the activity gains more traction, Top Line intends to exercise an oversubscription option for up to 5 million perpetual preferred shares.
The offer price is proposed at up to P100 per share.
Top Line hopes to roll this out from May 19 to June 1 of the year.
Once the new funds are secured, the firm said it would boost its supply chain optimization, especially with the launch of Topline Logistics and Development Corp., its Singapore-based trading house tasked with direct fuel importation.
“The preferred share issuance marks an important step in strengthening our capital base while providing stable returns for our investors through fixed dividends,” said Eugene Erik Lim, Top Line chair and CEO.
Vertical integration
“As we build on the momentum from our initial public offering last year, this fundraising will support our vertical integration strategy by enhancing supply chain capabilities, expanding our retail network and improving procurement flexibility,” he added.
A portion of the funds will also be allocated for the expansion of Top Line’s depot infrastructure and storage capacity to ready them for higher import volumes.
The new capital, it noted, would complement the expansion of its retail fuel unit, Light Fuels Corp.
The firm has engaged PNB Capital and Investment Corp. as the sole issue manager as well as joint lead underwriter and bookrunner, together with Security Bank Capital Investment Corp.
Top Line boosted its earnings by 21 percent to P120.29 million last year as the company sold more fuel from its commercial fuel trading and retail expansion. Its consolidated revenues also climbed 24 percent to P4.19 billion.
