Topline ignites Cebu expansion, eyes IPO

MANILA, Philippines — Fuel retailer Top Line Business Development Corp. is bolstering its arsenal with aggressive expansion plans, setting the stage for a potential public listing in the medium term.

Topline, which started in real estate before venturing into the liquid fuel business, plans to acquire at least five fuel stations in the province of Cebu from an existing industry player to bulk up its portfolio.

Eugene Erik Lim, Topline president and CEO, said they are pumping “more or less P50 million” for the deal, targeted to be sealed next month in time for the firm’s 11th anniversary.

He said they forwarded an offer to the other party just two weeks ago to advance the negotiations, which began earlier this year.

“We don’t know if it’s going to be a yes or a no. We’re still waiting for feedback,” Lim said in an interview last Friday.

Currently, the company has a market share of around 10 percent and intends to double it within one to two years through the planned acquisition of the five fuel stations.

Topline launched its first Light Fuels station in Mandaue City, Cebu, in 2023 and invested P210 million to put up and operationalize another nine – seven service and two express stations – this year.

With these investments, Lim said the company is looking to sell 12 million to 13 million liters of petroleum products annually.

He is also projecting about five years for the return on investments as he expects volume and revenues to grow in the next few years.

According to Lim, Topline’s expansion is still focused in Cebu to capitalize on the “quite booming” retail fuel market in the province.

As early as next year, the fuel firm is setting its sights on expansion in other areas in the Visayas region, including Bacolod and Iloilo.

“You know what they say – the trend is your friend. We want to ride the tide to position ourselves as the base there (so that) when we expand, it’s easier,” Lim said.

All these investments, expansion and portfolio development are integral to the company’s overarching goal of executing an initial public offering (IPO).

Asked for the timetable, Lim said that they are looking to face the public by 2028 “or earlier.”

“As of now, we have to finalize our processes because there’s a lot of commitment involved in the IPO, especially the management. Maybe in the future, an IPO will be ripe,” he said.

This year, the group has allocated around P1 billion for capital expenditures to fund its growth and expansion, targeting a 50 percent increase in its bottom line.

The company netted over P100 million in 2023, Topline first vice president and CFO Constance Marie Lim said.