CEBU-BASED Top Line Business Development Corp. (Top Line) is going public.
The company, engaged in fuel business filed a registration statement and listing application with the Securities and Exchange Commission and The Philippine Stock Exchange Inc. (PSE) for its planned initial public offering (IPO).
IPO is the process by which a private company offers its shares to the public for the first time. This is a significant step for a company, as it transitions from being privately held (owned by founders, early investors and sometimes employees) to being publicly traded on a stock exchange.
The PSE expects to have six IPOs for 2024.
Topline intends to offer up to 3.68 billion primary common shares, with an additional overallotment option of up to 368.31 million secondary common shares, at an indicative price of up to P0.78 per share.
The proposed offer period will be from 9 a.m. on Oct. 28, 2024, to 5 p.m. on Nov. 5.
“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,” Erik Lim, Top Line’s chairman, president and chief executive officer, said.
Top Line’s first-half gross revenues in 2024 accelerated by 15 percent at P1.56 billion compared to the same period last year at P1.36 billion. Its first-half net income has also surged by 190 percent year-on-year at P60.6 million from P20.8 million.
“Earnings from our commercial fuel trading boosted our sales in the first half with robust fuel demand in Metro Cebu and Cebu Province,” Lim added.
Top Line’s commercial fuel trading operations cater to customers with requirements of at least 4,000 liters per order in transportation, construction, shipping and mining, among others.
In terms of retail fuel under the Light Fuels brand, two new Light Fuels service stations are expected to open this month which will bring the company’s total operating retail fuel stations to three.
“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 Top Line’s continued growth,” Lim said.
Topline is investing P210 million for the expansion of its Light Fuel service stations.
The company is currently constructing five more Light Fuels service stations and two Light Fuels Express stations in Metro Cebu and Cebu Province. The Light Fuels Express stations are meant to meet the needs of motorcycle riders and other lighter vehicles which are growing rapidly in terms of vehicle type usage in Metro Cebu. / KOC