Topline repositions IPO proceeds ahead of stock market debut in April

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The Cebu-based fuel firm earmarks P300 million to construct 20 more service stations in the next two years, catering to underserved markets in Central Visayas

MANILA, Philippines – Cebu-based fuel firm Topline adjusted the allocation of expected proceeds from its initial public offering (IPO) as it prepares to list with the Philippine Stock Exchange (PSE) on April 8.

According to Topline’s president and chief executive officer Erik Lim, the company will now offer 2.1 billion primary common shares, with an overallottment option of 214.8 million secondary shares at P0.38 apiece. The offer price is subject to change depending on the book building process.

During a press conference on Wednesday, March 5, Lim explained that the change will accommodate potential block investments from a potential investor.

“We’re in advanced talks right now. We’ll know soon during the offer period, and since the books are slowly being built now, we are looking at a substantial strategic investor coming in,” Lim said.

Topline expects to raise up to P764.2 million in net proceeds from its IPO, lower than its initial P3.2 billion offering.

Part of the proceeds will go to the expansion of Topline’s retail segment. The Cebuano fuel firm earmarked P300 million to construct 20 more service stations in the next two years, catering to underserved markets in Central Visayas with a focus on serving motorcycles.

Lim said that Topline currently has six stations in different stages of construction. The company aims to have 10 fuel stations running by the end of the first quarter.

Another 23.6% of the IPO proceeds — around P180 million — will be used to purchase a new fuel tanker with a capacity of 5 million liters.

Lim said the company previously planned to raise capital for its depot expansion. But Topline decided to shift its focus on integrating businesses within the Topline Group of Companies, as well as its import and distribution network.

He added that the company will fund its depot expansion through other sources.

“Since we already have the depot, we can already accommodate the importation, the next thing there is network expansion,” Lim explained.

Poised to be the first company to go public in 2025, Topline executives said they remained optimistic their consistent growth will entice potential investors to take a chance on them.

“Ever since we started, we’ve been growing for the last few years, and we will work hard to continue that growth,” Topline’s chief operations officer Brigitte Lim said.

Topline’s income surged 157% in the last nine months of 2024 to P90.5 million, while revenues climbed 9.1% to P2.1 billion. – Rappler.com