TopLine outlines post-IPO expansion plans

Cebu-based fuel retailer TopLine Business Development Corp. on Wednesday bared its expansion plans amid its planned initial public offering (IPO).

At a press briefing in Taguig City, TopLine president and CEO Eugene Erik Lim announced that the company is expecting to raise up to P764.2 million in net proceeds from the sale of up to 2,148,440,000 primary common shares through an IPO, at an indicative offer price of up to P0.38 per share subject to a book-building process.

TopLine aims to use the net proceeds for its “vertical integration strategy,” which will allow the firm to manage key aspects of its operations from sourcing to distribution, representing both its commercial fuel trade and retail market segments.

“In view of the feedback from potential institutional investors, we have updated our expansion plans and IPO proceeds to focus on growing our current depot space, improving our importation processes, and expanding our operations. This approach will help us strengthen our market position to reliably supply fuel in the high-growth Central Visayas region and deliver more value to our shareholders in the long run,” Lim said.

TopLine currently operates four Light Fuels stations, while six are in various stages of construction and development.

By the first quarter of the year, Lim said the company is targeting to have 10 operational stations, including three Light Fuels Express.

Subject to market conditions and project timelines, TopLine is also targeting an expanded network of 30 operational Light Fuels stations by 2026, which includes the 20 stations to be funded by the IPO’s net proceeds.

Moreover, the company aims to acquire one fuel tanker with a capacity of five million liters to enhance its fuel storage capabilities and ensure a reliable supply chain.

A portion of the IPO net proceeds will also be allotted for working capital requirements for the fuel stock sourced from local and foreign suppliers.

The rest of the proceeds will be used for general corporate purposes, according to the TopLine chief.

“Through vertical integration, we are enhancing control over supply chain risks, paving the way for healthier profit margins, improved supply stability, and consistent product quality. The increased operational efficiency will sustain our expansion and growth momentum,” Lim said.

TopLine’s target listing date is on April 8, 2025, subject to PSE’s post-approval conditions and the issuance of the Permit to Sell by the Securities and Exchange Commission.

TopLine, through its affiliates, is also involved in port operations and management (Pier Eighty-Eight Ventures Inc.), real estate development (Topline Properties and Development Corp.), clean and green technology (Topline Energy and Power Development Corp.), port and ferry terminal operations (Topline Marine Wharf Development Corp.), technology research and development (Topline Hi Tech and Synergy Corp.), and restaurant operations and manpower services (Topline Services and Development Corp.). — VBL, GMA Integrated News