Cebu’s Top Line aims to be 1st IPO in 2025, sweetens deal terms with lower price

Top Line Business Development Corp., a fast-growing fuel trading and retail company based in Cebu, has moved its initial public offering (IPO) to the second quarter, potentially becoming the first company to list in 2025.

The Lim family-led firm announced plans to sell up to 22 percent of the business to public investors at an indicative price of P0.38 each to raise as much as P900 million.

This values Top Line at around P4.1 billion from its previous valuation of close to P10 billion.

Top Line, which will list under the stock symbol “TOP”, previously planned to raise as much as P3.2 billion, based on its indicative price of P0.78 per share.

Management’s view

“We appreciate the interest shown by potential investors in supporting our expansion and growth,” Erik Lim, Top Line’s chair, president and CEO, said in a statement on Wednesday.

“As such, we’ve adjusted our offer structure to reflect our adjusted capital requirements, and at the same time, maintain regulatory compliance,” he added.

Erik Lim 
Top Line chair, president and CEO 

Maiden IPO in 2025 

“We are excited to be the maiden IPO this year and the first company from Metro Cebu to go public in almost a decade,” Lim said.

“This milestone is not just for our company but also serves as an inspiration for other businesses outside Metro Manila to take the leap, embrace growth, and confidently enter the market to be on TOP,” he added.

New offer terms

Top Line will now sell up to 2.15 billion shares worth around P816 million to expand its fuel trading and retail footprint.

Another P214.84 million shares will be sold by the family under an overallotment option.

More attractive IPO

“We believe that the revised offer structure makes this IPO an attractive investment opportunity for investors seeking strong value and growth given the company’s compounded annual revenue growth rate of more than 49 percent from 2021 to 2023 - outpacing the growth of constituent companies of the Philippine Stock Exchange index,” according to Investment & Capital Corporation of the Philippines, which is the IPO issue manager, joint lead underwriter, and joint bookrunner.

“Top Line’s ability to attract interest from institutional investors also speaks of their confidence in the company’s fundamentals and its promising trajectory. We are of the view that Top Line could be a growth catalyst for the capital markets in 2025,” added joint lead underwriter PNB Capital and Investment Corp.

About the author
Miguel R. Camus
Miguel R. Camus

Miguel R. Camus has been a reporter covering various domestic business topics since 2009.

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