TopLine IPO pushed back to Q1 2025

Cebu-based Top Line Business Development Corp. (TopLine) on Monday said it is pushing back its planned initial public offering (IPO) to the first quarter of 2025, citing the need for more time for potential institutional investors to secure internal approvals.

In a statement, TopLine said it gathered feedback from the market that there is a need to adjust the initial public offering — scheduled November 27 to December 3, 2024 — to make way for the due diligence process of institutional investors.

“While we initially planned to proceed with our original offer period, we have received advice from potential investors to adjust our IPO timetable to accommodate their due diligence process,” TopLine president and chief executive officer Eugene Erik Lim said.

“This strategic move provides them with the necessary time for their thorough internal review and approval process,” he added.

Lim last week expressed optimism about the IPO despite the prevailing market conditions, as the company is banking on the projected growth in its market area in the Visayas.

The bookbuilding period started on November 4 and was scheduled to be completed on Friday, November 15, with the pricing targeted today, Monday, November 18.

“We are happy with the reception from our engagement with qualified institutional buyers, reflecting the strong fundamentals and positive prospects for the fuel industry,” Lim said.

“With the adjusted timetable, we will update our current prospectus to include the company’s year-to-date financial performance in Q3 2024 which would demonstrate our consistent growth trajectory,” he added.

TopLine has already secured regulatory approval to offer 3,683,100,000 common shares, with a maximum price of P0.78 apiece, with net proceeds expected at P2.75 billion.

Proceeds from the offer will be channeled into depot construction (36%), new fuel tankers (11%), new tank trucks (6%), new retail fuel service stations (2%), reinforcement of working capital (34%), and general corporate purposes (11%).

The company 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.

Topline, through its affiliates, is also involved in port operations and management (Pier Eighty-Eight Ventures Inc.), real estate development (Topline Properties and Development Corp.), clean and green technology (Topline Energy and Power Development Corp.), port and ferry terminal operations (Topline Marine Wharf Development Corp.), technology research and development (Topline Hi Tech and Synergy Corp.), and restaurant operations and manpower services (Topline Services and Development Corp.) — RSJ, GMA Integrated News