TOP LINE Business Development Corp. has secured regulatory approval to proceed with a P1.5-billion preferred share offering, marking the corporate’s latest capital-raising move to fund expansion and boost its fuel infrastructure.
In a press release on Thursday, the listed Cebu-based fuel distributor and retailer said the Securities and Exchange Commission has issued a permit allowing the sale of as much as 10 million perpetual preferred shares, with an oversubscription option of as much as 5 million shares. The shares are priced at P100 each.
The offer period will run from June 4 to 16, with listing on the foremost board of the Philippine Stock Exchange scheduled for June 26.
“We see this follow-on offering as a natural extension of the expansion momentum we began with our initial public offering last yr, as we proceed to execute our vertical integration strategy and spend money on infrastructure that strengthens our long-term competitiveness,” Top Line Chairman, President and Chief Executive Officer Eugene Erik C. Lim said.
He said the corporate is concentrated on executing a vertical integration strategy aimed toward strengthening its logistics and provide chain capabilities.
Net proceeds from the offering will fund expansion projects, particularly in depot capability and fuel importation infrastructure.
As much as P1 billion is allocated for import-related expenses, including procurement of petroleum products, freight and logistics costs.
About P440 million will likely be used for depot construction and upgrades, supporting storage capability of as much as 40 million liters.
The corporate also plans to develop a bigger energy complex in Cebu, which is anticipated to significantly expand its fuel storage capability and function a central logistics hub for its operations within the Visayas.
The project’s initial phase will involve refurbishment and optimization works, with completion targeted for the fourth quarter of 2026.
Once fully operational, the power is anticipated to quadruple storage capability from about 10 million liters, improving distribution efficiency and provide reliability.
Mr. Lim said the fundraising would help position the corporate for its next stage of growth while aligning with broader efforts to strengthen energy security and improve fuel supply stability in regional markets.
Top Line, which originally operated in leasing and real estate, entered the fuel industry in 2017 and has since expanded into trading, depot operations and retail distribution.
The corporate has been constructing out its downstream fuel network as competition intensifies within the sector and demand for more resilient fuel logistics infrastructure rises.
Top Line shares closed unchanged at P1.40 on the local bourse. — Sheldeen Joy Talavera