Cebu's TopLine secures SEC approval for November IPO

Top Line Business Development Corp. (TopLine) has secured the approval of the Securities and Exchange Commission (SEC) to proceed with its P2.87-billion initial public offering (IPO) scheduled in November.

According to the SEC, its Commission En Banc resolved to render Top Line’s registration statement covering 3,683,100,000 common shares in its meeting on Tuesday, October 8, subject to compliance with certain requirements.

TopLine is set to offer the primary common shares with a maximum price of P0.78 apiece, and expects to net up to P2.75 billion for the construction of fuel depots and service stations, the acquisition of fuel tankers and tank trucks, working capital, and general corporate purposes.

The company also has an overallotment option of up to 368,310,000 secondary common shares, but it will not receive proceeds from the exercise of this.

Based on the latest timeline submitted to the corporate regulation, TopLine’s offer is scheduled to run from November 6 to November 12, with the shares listed on the Main Board of the Philippine Stock Exchange on November 22.

It tapped Investment & Capital Corporation of the Philippines and PNB Capital and Investment Corporation as the joint lead underwrites and joint bookrunners for the transaction.

“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 August.

The firm in July said it is looking to establish nine branches of its fuel business through its subsidiary Light Fuels Corp. (LFC) in 2024, after introducing its first in Mandaue City in 2023.

TopLine ended the first half with a P60.553-million net income, 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. — RSJ, GMA Integrated News