SEC Greenlights P2.75-Billion IPO of Cebu-Based Energy Company
Top Line Business Development Corp. can proceed with its planned initial public offering for up to P2.87 billion after the Securities and Exchange Commission gave it the go-signal.
In a news release on Wednesday (October 9), the SEC said it has approved the registration statement of Top Line covering 3,683,100,000 common shares, subject to the company’s compliance with certain remaining requirements. The company will offer the shares at P0.78 apiece
The company will also offer 368,310,000 secondary common shares owned by selling shareholders as part of the overallotment option.
Top Line said it expects to raise about P2.75 billion from the IPO, which it intends to use for the construction of fuel depots and service stations, acquisition of fuel tankers and tank trucks, working capital, as well as for general corporate purposes.
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What is Top Line?
Originally involved in leasing and real estate, Top Line eventually expanded into fuel trading and depot operations servicing mainly Cebu and the Central Visayas region. In February 2023, the company opened its first retail fuel station in Mandaue City. The company is targeting to open at least nine Light Fuels stations around Metro Cebu and Cebu province this year.
The company reported revenues of P2.8 billion in 2023, up 33 percent compared to P2.1 billion the previous year. In the first quarter of 2024, it also registered nine percent growth on its revenues versus the same period last year.
Top Line owns and operates the Light Fuels brand of fule stations in Cebu City
The company is led by siblings chairman, president and CEO Eugene Erik Lim; older sister Brigitte Carmel Lim as SVP, COO, and Corporate Secretary; and youngest sister Atty. Constance Marie C. Lim, who is first vice president and CFO. They have two other siblings who are not directly involved in the company's operations.
During a briefing with members of the press earlier this year, the siblings said its first retail fuel stations is contributing about three percent to the company’s revenues.
“It’s only been a year, but we’re hopeful we can increase that number,” Erik Lim said.
Based on the latest timeline submitted by Top Line to the SEC, the IPO is scheduled to run from November 6 to 12, in time for listing on the main board of the Philippine Stock Exchange on November 22.
The company tapped Investment & Capital Corporation of the Philippines and PNB Capital and Investment Corporation as the joint lead underwriters and joint bookrunners for the transaction.
Top Line will be the fourth company to debut on the PSE this year, after OceanaGold Philippines Inc., Citicore Renewable Energy Corp., and NexGen Energy Corp.
