Cebu-based fuel retailer Top Line Business Development Corp. is pushing through with its planned P3.2-billion initial public offering (IPO) despite the recent sell-off in the stock market.
Top Line president and chief executive Eugene Erik Lim said in a news briefing Thursday the company would proceed with its maiden share offering as it is committed to its investors and its growth strategy despite the current market conditions.
“For us, despite market conditions, it is still okay for us. So, we are okay pushing through with the listing,” Lim said.
The bellwether Philippine Stock Exchange Index dropped over the past trading days after hitting a high of 7,553 on Oct. 10, 2024. It closed at 6,557.09 Thursday, down 157.24 points, or 2.34 percent, on concerns about the US economic policies of president-elect Donald Trump.
Lim said its underwriters began receiving inquiries during the book-building process. He said the company would set the final offer price for the IPO on Nov. 18, 2024.
The offer period will run from Nov. 27 to Dec. 3, 2024. Its shares will be listed on the main board of the Philippine Stock Exchange on Dec. 14. 2024 under the ticker symbol “TOP.”
Top Line will be the fourth company to list on the local bourse this year. It will also be the first provincial company to list after the pandemic.
Top Line will offer up to 3.68 billion primary shares, with up to 368.31 million in over-allotment option shares. The IPO shares are priced at P0.78 apiece.
The company said it would use the proceeds to build fuel depots in Mactan, Cebu and Bohol that would have a combined storage capacity of 30 million liters.
It will also use a portion of the proceeds for the acquisition of fuel tankers and tank trucks and the construction of ten Light Fuels service stations.
