Top Line makes market debut

MANILA, Philippines — Top Line Business Development Corp. has ushered in this year’s listings at the Philippine Stock Exchange (PSE), making its market debut yesterday after raising P732.6 million from an oversubscribed initial public offering (IPO).

Top Line said that its IPO of 2.15 billion primary common shares with an overallotment option of up to 214.84 million secondary shares at P0.31 apiece received strong market interest from both local and foreign institutional investors, as well as retail investors.

The company listed its shares on the main board of the PSE with a public float of 22 percent.

Top Line shares, however, closed at P0.30 on its first trading day, 3.23 percent lower than its offer price of P0.31.

“While we acknowledge broader market challenges affecting investor sentiment both locally and globally, we are glad for our IPO’s oversubscription, receiving overwhelming support from our institutional and retail investors,” Top Line chairman, president and CEO Erik Lim said.

Net proceeds from the IPO will fund Top Line’s vertical integration, importation and expansion plans to provide flexibility and reliability in its fuel supply as it penetrates the retail market of Central Visayas.

With the company’s IPO, its current 10 Light Fuels service stations will be expanded to 30 through the construction of additional 20 service stations that will strengthen Top Line’s market presence in Cebu.

“Rest assured that Top Line is committed to maximizing our investors’ shareholder value. And at the same time to give more fresh ideas to the industry, to innovate and incorporate more technologies to our supply chains and expansion network and to make it even more efficient and future-ready,” Lim said.

Lim hopes that Top Line’s IPO can be a catalyst and pave the way for other companies outside Metro Manila to list in the PSE in the near future.

Top Line is the first IPO of the year and the first Cebu-based company to complete an IPO in almost a decade.