Cebu-based fuel retailer Top Line Business Development Corp. (Topline) is in talks with potential investors for its planned initial public offering (IPO).
Top Line chairman, president and chief executive Erik Lim said the company is in advance talks with a strategic investor that will come in during the IPO.
Lim said the company dropped the plan to expand its depot capacity and would instead focus on fuel importation and expansion of fuel service stations in Central Visayas.
“In view of the feedback from potential institutional investors, we have updated our expansion plans and IPO proceeds to focus on growing our current depot space, improving our importation processes, and expanding our operations,” Lim said.
“This approach will help us strengthen our market position to reliably supply fuel in the high-growth Central Visayas region and deliver more value to our shareholders in the long run,” he said.
Top Line is now planning to raise P764.2 million in its maiden share offering in April, down from an initial target of P3.2 billion.
Under the plan, Top Line will build 20 service stations under the Light Fuels brand from 2025 to 2026.
It currently has four Light Fuels stations while six fuel stations are in various stages of construction and development.
The company aims to have 10 operational stations, including three Light Fuels Express by the first quarter.
Top Line also plans to acquire a fuel tanker with a capacity of five million liters to enhance its fuel storage capabilities and ensure a reliable supply chain.
A portion of the net proceeds will also be allotted for working capital requirements for the fuel stock sourced from local and foreign suppliers. The rest of the proceeds will be used for general corporate purposes.
Top Line will sell up to 2.148 billion primary common shares for its IPO at an indicative offer price of up to P0.38 per share, subject to a bookbuilding process.
Offer period will from March 24 to 31, 2025. The shares will be listed on the main board of the Philippine Stock Exchange on April 8, 2025.
