THE Securities and Exchange Commission (SEC) has approved the P3.16-billion initial public offering (IPO) plan of Cebu-based fuel retailer Top Line Business Development Corp.
The company is looking to offer to the public an initial 3.68 billion primary shares and another 368.31 million secondary shares to cover the greenshoe option, at an offer price of up to P0.78 per share.
Of the proceeds, only P2.87 billion covering the primary share issuances will go to the company for its funding needs.
The company said it eyes to have its IPO held on November 5 to 12, in time for listing at the Philippine Stock Exchange on November 22.
The company is constructing five Light Fuels service stations and two Light Fuels Express stations in Metro Cebu and Cebu province.
Regulatory filings showed the company will use the P2.87 billion proceeds from the primary shares sale to construct fuel depots, acquire tankers and trucks, construct service stations as well as for working capital.
The company said the planned fuel depots in Mactan and Bohol, worth P980 million, will be equipped with terminal for receiving and deliveries and will have a combined storage capacity of 30 million liters.
The main storage in Mactan will have a capacity of 25 million, serving as the receiving facility for the imported supplies, while the Bohol storage will serve as a satellite depot that will ensure the availability of stocks in the surrounding region.
The construction is eyed for next year in time for its operation by mid-2026.
Top Line is looking to build 10 Light Fuels services stations using the proceeds worth P65 million that will start construction next year and will be operational between 2025 and 2026.
The company also plans to acquire two units of compartmentalized fuel tankers with capacity of 5 million liters for each vessel as well as 40 units of tank trucks with rated capacities of at least 20,000 liters.
The acquisition of tank trucks will take place between 2024 and 2025, it added.
Top Line’s commercial fuel trading operations caters to customers with requirements of at least 4,000 liters per order in transportation, construction, shipping and mining, among others.
In terms of retail fuel under the Light Fuels brand, two new Light Fuels service stations are expected to open this month which will bring the company’s total operating retail stations to three.
Top Line initially focused on real estate development and leasing ventures before it ventured into the fuels business in 2017.
