Top Line sets over 9% dividend rate for FOO

MANILA, Philippines — Top Line Business Development Corp. is sweetening its planned issuance of up to P1.5 billion worth of perpetual preferred shares with initial fixed dividend rates exceeding nine percent.

The listed fuel retailer of Cebu’s Lim family said its Series A-1 and Series A-2 preferred shares would carry an annual payout rate of 9.1325 percent and 9.5981 percent, respectively.

The Securities and Exchange Commission issued the green light for the issuance on Wednesday, effectively allowing Top Line to offer 10 million preferred shares with an oversubscription option of up to five million shares.

This follows the Philippine Stock Exchange (PSE)’s approval of the listing application in April.

“We see this follow-on offering (FOO) as a natural extension of the growth momentum we began with our initial public offering last year, as we continue to execute our vertical integration strategy and invest in infrastructure that strengthens our long-term competitiveness,” Top Line chairman, president and CEO Eugene Erik Lim said.

“At the same time, we are strengthening Philippine energy security by ensuring reliable fuel access in the Visayas,” Lim said.

The offer period for the shares, priced at P100 each, started yesterday and will run until June 16, with listing on the PSE main board expected on June 26.

Proceeds from the transaction will be used to support Top Line’s expansion efforts, particularly in strengthening its depot capacity and importation capabilities.

Top Line has tapped PNB Capital and Investment Corp. as the sole issue manager that will also act as joint lead underwriters and bookrunners alongside Security Bank Capital and Investment Corp.

“This follow-on offering will help provide the company with additional capital to sustain its further expansion while giving investors access to a growing fuel player with strong fundamentals,” PNB Capital president and CEO Gerry Valenciano said.

Top Line, which raised P732.6 million from its market debut last year, is betting big on the Visayas market with plans to build a major energy hub in Cebu that could quadruple its fuel storage capacity.