By Revin Mikhael D. Ochave, Reporter
CEBU-BASED fuel retailer Top Line Business Development Corp. (Topline) will push through with its initial public offering (IPO) despite the local bourse’s recent slump, its president said.
“We’re already committed to our investors. Even through (tough) market conditions, I think we’re still okay in pushing through with the listing,” Topline President and Chief Executive Officer Eugene Erik C. Lim said during a media briefing in Makati City on Thursday.
Based on the company’s prospectus dated Oct. 31, Topline has set Dec. 12 as its tentative listing date. The offer period will be from Nov. 27 to Dec. 3, while the price will be set on Nov. 18.
Topline’s IPO will consist of 3.68 billion primary shares and an overallotment option of up to 368.31 million secondary shares priced at up to 78 centavos apiece.
The company expects to raise up to P2.75 billion in net proceeds, which will be used to build fuel depots in Mactan, Cebu and in Bohol that will have a combined storage capacity of 30 million liters.
A portion of the proceeds will also be earmarked for the acquisition of fuel tankers and tank trucks, as well as the construction of ten service stations for its Light Fuels fuel station chain.
“Market conditions are very tough at the moment, so hopefully they could pull off a successful IPO if they decide to push through this month,” Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
On Thursday, the bellwether Philippine Stock Exchange Index (PSEi) fell by 2.34% or 157.24 points to 6,557.09. This was the PSEI’s lowest in over three months or since the 6,549.27 close on Aug. 8.
Mr. Lim said this as Topline’s IPO is looking to capitalize on the P1.38-trillion economy of Central Visayas as well as the 9.02% fuel consumption growth rate in Cebu.
A study by the University of Asia and the Pacific and commissioned by Topline showed that Central Visayas’ gross domestic product (GDP) grew by 7.46% year on year, outpacing the national GDP growth rate of 5.5% in 2023.
Central Visayas is also considered the largest regional market outside Luzon with a gross regional domestic product of P1.38 trillion and 6.45% share to total Philippine GDP.
The study likewise showed that diesel consumption in Cebu rose by 8.75% to 542.7 million liters in 2022 from 499 million liters in 2021.
“In our meetings with our investors, we have emphasized our results-driven approach and our rapid growth trajectory. Our IPO will help us pursue our vertical integration strategies in Central Visayas,” Mr. Lim said.
Meanwhile, Topline is also launching its mobile-based Light Rewards App, which allows users to receive points for purchases made in Light Fuels stations as well as other retail customer-facing segments of the Topline Group.
The points can be used to redeem discounts, free products, and special offers. Light Rewards allows users to track their points balance and rewards status.
Topline is slated to be the fourth IPO this year, joining gold and copper mining company OceanaGold (Philippines), Inc., and renewable energy companies Citicore Renewable Energy Corp. and NexGen Energy Corp.