Top Line secures P1.5 billion fresh capital to fund expansion

CEBU, Philippines — Top Line Business Development Corp. raised 1.5 billion pesos ($26.4 million) from an oversubscribed sale of perpetual preferred shares, providing fresh capital for the Cebu-based fuel distributor’s expansion plans aimed at strengthening fuel supply security in the Visayas.

The preferred shares, listed on the Philippine Stock Exchange (PSE) on June 26 under the ticker symbols TOPA1 and TOPA2, comprised 1 billion pesos in firm shares and an additional 500 million pesos from an oversubscription option that was fully taken up by investors.

TOPA1 carries an annual dividend rate of 9.1325 percent, while TOPA2 offers 9.5981 percent.

The proceeds will fund the company’s importation activities and expand its storage and distribution network as it seeks to address supply-chain constraints in one of the Philippines’ fastest-growing regional economies.

Top Line plans to earmark as much as 1 billion pesos for working capital tied to fuel importation, including the purchase of petroleum products and shipping costs. About 440 million pesos will be used to construct and renovate fuel depots with a combined storage capacity of up to 40 million liters, while the remainder will be allocated for general corporate purposes.

“We remained focused on the strong long-term fundamentals of the Visayas and the growing need for a more reliable and resilient fuel supply chain,” Chairman and Chief Executive Officer Erik Lim said in a statement.

The company said the fundraising supports its strategy of expanding depot capacity and importation capabilities to ensure adequate fuel supply, storage and distribution infrastructure across the Visayas.

Top Line Business Development Corp. tapped PNB Capital and Investment Corporation as sole issue manager, with Security Bank Capital Investment Corporation serving as joint lead underwriter and joint bookrunner.