CEBU-BASED fuel retailer Top Line Business Development Corp. (Topline) has secured the approval of the Philippine Stock Exchange (PSE) for its planned initial public offering (IPO) value as much as P3.16 billion.
Top Line’s maiden offering will consist of three.68 billion primary shares and an overallotment option of as much as 368.31 million shares priced at as much as 78 centavos apiece, the PSE said in an e-mailed statement on Thursday.
Based on a prospectus dated Oct. 31, the offer period will probably be from Nov. 27 to Dec. 3, while the tentative listing date is on Dec. 12. The ultimate price will probably be determined on Nov. 18.
Top Line will probably be listed on the PSE’s principal board and will probably be traded via the ticker symbol “TOP.”
At the utmost offer price of 78 centavos, Top Line goals to generate P2.75 billion in net proceeds. The corporate is not going to receive any proceeds from the overallotment option.
The corporate will use the proceeds to construct fuel depots in Mactan, Cebu, and in Bohol that can have a combined storage capability of 30 million liters.
A portion of the proceeds may even be allocated for the acquisition of fuel tankers and tank trucks, in addition to the development of ten Light Fuels service stations.
Investment & Capital Corp. of the Philippines and PNB Capital and Investment Corp. were appointed because the joint lead underwriters and joint bookrunners for the offer.
“Doing an IPO is a giant step for firms aiming for growth and expansion. We’re pleased that the equities market can support Top Line’s business strategy by providing access to capital it must speed up its development, which is crucial in solidifying its position within the industry,” PSE President and Chief Executive Officer Ramon S. Monzon said.
Top Line began industrial fuel trading operations in 2017, mainly in Central Visayas. The corporate operates a retail distribution network via fuel station chain Light Fuels.
The corporate is slated to be the fourth IPO this 12 months, joining gold and copper mining company OceanaGold (Philippines), Inc., and renewable energy firms Citicore Renewable Energy Corp. and NexGen Energy Corp. — Revin Mikhael D. Ochave
