CEBU-BASED fuel retailer Top Line Business Development Corp. (Topline) has decided to maneuver the offer period for its planned initial public offering (IPO) to the primary quarter (Q1) of 2025 to accommodate institutional investors who need more time to secure internal approvals, its chairman said.
Topline initially scheduled the IPO’s offer period from Nov. 27 to Dec. 3, with a tentative listing date of Dec. 12. The brand new timetable shall be announced following regulatory processes.
The corporate made the choice a number of days after it said it might proceed with the IPO’s original timetable despite the local market slump.
“While we initially planned to proceed with our original offer period, we’ve received advice from potential investors to regulate our IPO timetable to accommodate their due diligence process,” Topline Chairman, President, and Chief Executive Officer Eugene Erik C. Lim said in an e-mailed statement on Monday.
“This strategic move provides them with the vital time for his or her thorough internal review and approval process,” he added.
With this announcement, the Philippine Stock Exchange (PSE) will see only three IPOs for 2024, missing its goal of six.
The general public listings this yr include gold and copper mining company OceanaGold (Philippines), Inc. and renewable energy corporations Citicore Renewable Energy Corp. and NexGen Energy Corp.
The PSE previously said it expects to have six IPOs next yr, including west zone water concessionaire Maynilad Water Services, Inc.
Meanwhile, Topline said it gathered initial market feedback through institutional buyers.
“We’re completely happy with the reception from our engagement with qualified institutional buyers, reflecting the strong fundamentals and positive prospects for the fuel industry,” Mr. Lim said.
“With the adjusted timetable, we are going to update our current prospectus to incorporate the corporate’s year-to-date financial performance within the third quarter, which might show our consistent growth trajectory,” he added.
Topline’s IPO will consist of three.68-billion primary shares and an overallotment option of as much as 368.31-million secondary shares priced at as much as 78 centavos apiece.
The corporate expects to lift as much as P2.75 billion in net proceeds, which shall be used to construct fuel depots in Mactan, Cebu, and in Bohol that may have a combined storage capability of 30 million liters.
A portion of the proceeds can even be earmarked for the acquisition of fuel tankers and tank trucks, in addition to the development of ten service stations for its Light Fuels fuel station chain.
“I imagine Top Line’s deferment of its IPO is a very good move given the present market conditions,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Trading activity is just not consistently strong as many stay on the sidelines amid lingering headwinds. So propping up investors’ appetite for brand new issues might be a challenge for the current period,” he added.
Topline has business interests in business fuel trading, depot operations, and retail fuel within the Visayas region.
The corporate has two subsidiaries, namely Topline Logistics and Development Corp., envisioned to interact within the importation, trading, distribution, and marketing of petroleum-based products, and Light Fuels Corp., involved within the fuel retail business. — Revin Mikhael D. Ochave
