Top Line Business Development Corp., a Cebu-based fuel retailer, postponed its planned P3.2-billion initial public offering to first quarter of 2025 amid volatile market conditions.
Top Line said in a letter to the local bourse it decided to defer the maiden offering originally slated in December to accommodate potential institutional investors.
“While we initially planned to proceed with our original offer period, we have received advice from potential investors to adjust our IPO timetable to accommodate their due diligence process. This strategic move provides them with the necessary time for their thorough internal review and approval process,” said Top Line chairman, president and chief executive Erik Lim.
Top Line told reporters last week it would proceed with the IPO, which targeted an offer period of Nov. 27 to Dec. 3, 2024, with a listing on Dec. 12, 2024.
The market has been on the downward for the past trading weeks, following the reelection of US president-elect Donald Trump, weakening of the peso against the dollar. The sluggish third-quarter GDP growth also affected market sentiment.
Top Line said it would announce a new IPO timetable following regulatory processes.
Lim said during the company’s book-building process that Top Line gathered initial feedback from the market through qualified institutional buyers.
“We are happy with the reception from our engagement with qualified institutional buyers, reflecting the strong fundamentals and positive prospects for the fuel industry,” Lim said.
“With the adjusted timetable, we will update our current Prospectus to include the company’s year-to-date financial performance in Q3 2024 which would demonstrate our consistent growth trajectory,” he said.
Top Line initially planned to sell up to 3.683 billion primary common shares, with an overallotment option for another 368.31 million secondary common shares at an offer price of up to P0.78 apiece.
Top Line was supposed to be the fourth company to list on the local bourse this year. Other firms that listed on the PSE this year were OceanaGold Philippines Inc., renewable firm Citicore Renewable Energy Corp. and NexGen Energy Corp.
