CEBU-based fuel retailer, Top Line Business Development Corp. (Topline) has decided to move the timing of its planned initial public offering (IPO) to the first quarter (Q1) of 2025 to accommodate institutional investors who need more time to secure inside. permits, said its chairman.
Topline had originally planned to time the IPO offering from Nov. 27 to Dec. 3, with a scheduled listing date of Dec. 12. The new timetable will be announced following regulatory procedures.
The company made the decision a few days after it said it would go ahead with the original IPO timetable despite the country’s volatile market.
“Although we planned to continue with our initial timeline, we received advice from potential investors to adjust our IPO timeline to accommodate their due diligence process,” Topline Chairman, President and Chief Executive Officer Eugene Erik C. Lim said in a statement. emailed statement on Monday.
“This important step gives them the necessary time for a thorough internal review and approval process,” he added.
With this announcement, the Philippine Stock Exchange (PSE) will see only three IPOs for 2024, missing its target of six.
Public listings this year include gold and copper mining company OceanaGold (Philippines), Inc. and renewable energy companies Citicore Renewable Energy Corp. and NexGen Energy Corp.
Earlier, PSE said it expects to have six IPOs next year, including the water concession in the western region of Maynilad Water Services, Inc.
Meanwhile, Topline said it has gathered initial market feedback from institutional buyers.
“We are pleased with the reception from our discussions with qualified institutional buyers, which indicate strong fundamentals and good prospects for the petroleum industry,” said Mr. Lim.
“With the revised timetable, we will update our current prospectus to include the company’s current financial performance in the third quarter, which would reflect our consistent growth path,” he added.
Topline’s IPO will consist of 3.68-billion primary shares and an all-merger option of up to 368.31-million secondary shares valued at 78 centavos each.
The company expects to raise up to P2.75 billion, which will be used to build fuel storage facilities in Mactan, Cebu, and Bohol that will have a storage capacity of 30 million liters.
Part of the profit will also be set aside for the purchase of fuel tanks and tanker trucks, as well as the construction of ten Light Fuels fuel stations.
“I believe that Top Line’s postponement of its IPO is a good move given the current market conditions,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“The business is not strong as many are sitting on the sidelines in the middle of the storm. So increasing the enthusiasm of investors with new issues can be a challenge at this time,” he added.
Topline has business interests in commercial fuel trading, depot operations, and retail fuel in the Visayas region.
The company has two subsidiaries, namely Topline Logistics and Development Corp., which is expected to be involved in the sale, trading, distribution and marketing of petroleum-based products, and Light Fuels Corp., which is involved in the business of selling fuel. — Revin Mikhael D. Ochave
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