Topline lowers final IPO price, eyes up to P732.62-M proceeds

CEBU-BASED fuel retailer Top Line Business Development Corp. (Topline) has set its initial public offering (IPO) price at 31 centavos per share, targeting proceeds of up to P732.62 million.

The IPO comprises 2.36 billion shares, including a base offer of 2.15 billion primary common shares and an overallotment option of up to 214.84 million secondary common shares, the company said in a regulatory filing on Tuesday.

The final price is lower than the initial maximum offer price of 38 centavos per share.

Topline initially planned to raise P3.16 billion but reduced the offering to P900 million before adjusting it to P732.62 million based on the final price.

“The final offer price considers current market conditions while ensuring Topline can pursue its strategic initiatives, including expanding fuel stations and logistics capabilities with additional fuel trucks and tankers,” Topline said in a statement.

“We are pleased with the strong demand at this price and believe it offers significant upside potential for investors,” it added.

Based on Topline’s prospectus dated Feb. 25, the offer period will run from March 24 to 31, with a target listing date of April 8.

Topline Chairman, President, and Chief Executive Officer Eugene Erik C. Laparasan Lim said the company adjusted its IPO proceeds allocation to align with near-term expansion plans.

Proceeds will be used to build new Light Fuels service stations and acquire a fuel tanker to increase storage capacity. A portion will also be set aside for working capital and general corporate purposes.

“Through vertical integration, we are strengthening control over supply chain risks, leading to healthier profit margins, improved supply stability, and consistent product quality. Enhanced operational efficiency will sustain our expansion and growth momentum,” Mr. Lim said.

“In response to feedback from potential institutional investors, we have refined our expansion plans and IPO proceeds allocation to prioritize depot expansion, importation process improvements, and operational growth. This strategy will reinforce our market position in the high-growth Central Visayas region and create long-term value for shareholders,” he added. — Revin Mikhael D. Ochave