Top Line sets final IPO price

MANILA, Philippines — Top Line Business Development Corp. has finalized the offer price for its maiden share sale, which will be the first initial public offering (IPO) in the country this year.

Top Line has set the final offer price of its IPO at P0.31 per share, lower than the indicative offer price of P0.38 apiece.

With the price, the company could raise as much as P732.6 million from the planned offering of up to 2.15 billion primary common shares, with an over allotment option of up to 214.84 million shares.

Top Line said the final offer price takes into account current market conditions, while still ensuring that the company can pursue its strategic initiatives, including establishing new fuel stations and expanding its logistics capabilities with additional fuel trucks and tankers with its net proceeds.

“We are also very pleased with the strong coverage of our books at this offer price and believe it presents significant upside potential for prospective investors,” the company said.

Based on Top Line’s earlier timetable, the offer period is seen running from March 24 to March 31, 2025.

The company’s target listing date on the Philippine Stock Exchange is on April 8, 2025

Top Line’s IPO was supposed to be the fourth and last IPO for 2024, but has been moved and is now slated to be the first this year.

Proceeds from the IPO will be used by the company for its vertical integration strategy, which will allow it to manage key aspects of its operations from sourcing to distribution, representing both its commercial fuel trade and retail market segments.

A portion of the net proceeds will be used for the construction of additional 20 service stations under the Light Fuels brand expected to be operational within 2025 to 2026.

The company also seeks to acquire one fuel tanker with a capacity of five million liters to enhance its fuel storage capabilities and ensure a reliable supply chain.

The net proceeds will likewise 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.