Top Line, the Lim family’s fast-growing fuel trading business, is expanding into retail stations under the Light Fuels brand, has priced its IPO at P0.31 per share, which is below the maximum indicative price of P0.38 apiece.
While the offer period is set to run from March 24-31, the backing of institutional partners strengthens the listing’s prospects, which aims to raise nearly P733 million.
Institutional investors are prepared to absorb more than half of the IPO, though final commitments are still under discussion, practically ensuring the deal will be oversubscribed, the source said.
In a statement on Tuesday, Top Line’s management said the offer price “takes into account current market conditions while still ensuring that Top Line can pursue its strategic initiatives”, which including opening new fuel stations and expanding its logistics capabilities.
“We are also very pleased with the strong coverage of our books at this offer price and believe it presents significant upside potential for prospective investors,” the company said.
The offer is being supported by Investment & Capital Corporation of the Philippines and Lucio Tan’s PNB Capital and Investment Corp.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
