Cebu’s TopLine files IPO, eyes November listing

Cebu-based Top Line Buisness Development Corp. (TopLine) is looking to raise  P2.872 billion from its maiden offering, with the company targeting to be listed on the Philippine Stock Exchange (PSE) by November.

Based on its prospectus, TopLine is looking to offer up to 3,683,100,000  primary common shares, with an overallotment option of up to 268,310,000 secondary common to be listed on the PSE under the trading symbol “TOP”

TopLine said it would offer up to 1,104,946,000 trading participants and retail offer shares — up to 736,636,000 allocated to all PSE trading participants and 368,310,000 to local small investors (LSIs).

At least 2,578,154,000 offer shares will be offered to certain qualified buyers and other investors in the Philippines by the joint lead underwriters, Investment & Capital Corporation of the Philippines  (ICCP).

Based on an offer price of up to P0.78 per share,  TopLine expects gross proceeds of P2.872 billion and net proceeds of  P2.754 million, taking into account P118.5 million worth of estimated fees and expenses from the offer.

TopLine has set a price-setting date of October 21, 2024, with the offer period scheduled from October 28, 2024 to October 30, 2024. The listing date has been set for November 15, 2024, subject to the approval of the PSE and the Securities and Exchange Commission (SEC).

“With our accelerating growth in recent years in the fuel sector of the Visayas region, we are poised for the company’s historic milestone of listing on the PSE,” TopLine  Chairman, President, and Chief Executive Officer Eugene Erik Lim said in a separate statement.

From the proceeds, TopLine said P980  million or 36% will be for the construction of fuel depots, P937.5  million or 34% for working capital, P300 million or 11% for the acquisition of fuel tankers, P160 million or 6% for the acquisition of tank trucks, P65  million or 2% for the construction of service stations, and P311.8  million or 36% for general corporate purposes.

TopLine had said it was looking to establish nine branches of its fuels business through its subsidiary Light Fuels Corp. (LFC), after introducing its first in Mandaue City in 2023. Each station would cost P10 to P15 million.

It also intended to build fuel depots equipped with a terminal for receiving and deliveries, including the main storage in Mactan with a  25-million liter capacity, and another in Bohol with a 5-million liter capacity. Construction of the depots are set to start in 2025.

“We are still set to meet our target of 10 operating service stations this year. Our expansion in the retail fuel market will further support our vertical integration plans, supporting TopLine’s continued growth,” Lim said.

TopLine ended the second quarter of the year with a  P33.069-million net income, higher than the P10.572-million net income the same quarter in 2023. Sales for the period grew to P826.066 million from P676.568 million, while costs of sales increased to P758.889  million from P628.011 million.

Its first-half net income stood at P60.553 million, up from P20.788 million the previous year. Sales  climbed to P1.430 billion from P1.263 billion, while the cost of sales rose to P1.430 billion from P1.263 billion.

“Earnings from our commercial fuel trading boosted our sales in the first half with robust fuel demand in Metro Cebu and Cebu Province,” Lim said. — DVM, GMA Integrated News