Cebu-based Top Line Business Development Corp. (Top Line) said it reduced the size of its planned initial public offering from P3.16 billion to P900 million amid the continued volatility in the equities market.
Top Line lowered the offer shares and offer price. From an initial plan to sell 3,683 billion primary common shares with an overallotment option for another 368.3 million secondary common shares, Top line will now sell up to 2.148 billion shares with an overallotment of 214.8 million shares.
The maximum offer price is now set at P0.38 per share, down from an earlier target of P0.78.
The reduction in IPO size was made following the company’s discussions with potential institutional investors.
“We appreciate the interest shown by potential investors in supporting our expansion and growth. As such, we’ve adjusted our offer structure to reflect our adjusted capital requirements, and at the same time maintain regulatory compliance,” said Top Line chairman, president and chief executive Erik Lim.
Top Line again delayed the planned IPO to second quarter of 2025.
“ “We are excited to be the maiden IPO this year and the first company from Metro Cebu to go public in almost a decade. This milestone is not just for our company but also serves as an inspiration for other businesses outside Metro Manila to take the leap, embrace growth, and confidently enter the market to be on top,” Lim said.
Assuming the full exercise of the overallotment option, the shares owned by the public will be about 22 percent.
The underwriters of Top Line’s IPO expressed confidence in the offering’s structure, saying that the revised offer structure would position Top Line for strong momentum in the public market.
“We believe that the revised offer structure makes this IPO an attractive investment opportunity for investors seeking strong value and growth given the company’s compounded annual revenue growth rate of more than 49 percent from 2021 to 2023 – outpacing the growth of constituent companies of the Philippine Stock Exchange index,” said Investment & Capital Corporation of the Philippines, the company’s issue manager, joint lead underwriter, and joint bookrunner said.
PNB Capital and Investment Corp. also expects Top Line ‘s IPO to be a “growth catalyst” for the capital markets for this year.
