The Cebu-based fuel trader set dividend rates of 9.1325 percent for its Series A-1 preferred shares and 9.5981 percent for its Series A-2 preferred shares.
The rates are well above the 6.1179 percent and 6.7631 percent dividend rates Globe Telecom offered in its P25-billion preferred share sale launched on Feb. 13, 2026.
This was before the Israel-Iran conflict drove oil price volatility and renewed concerns that interest rates could stay higher for longer.
Deal takes shape
The offer period runs from June 4 to June 16, with listing targeted on June 26 this year.
PNB Capital and Investment Corp. is serving as sole issue manager and joint bookrunner alongside Security Bank Capital Investment Corp. as joint lead underwriter and joint bookrunner.
The deal will test investor appetite for one of the highest-yielding preferred share offerings in the market this year.
Expansion push
The fundraising will help finance depot construction and upgrades while supporting working capital needs as the company expands its fuel trading and logistics operations.
Unlike many preferred share issuers that use proceeds primarily to refinance debt, Top Line is tapping investors to fund growth and strengthen its fuel logistics network.
The company is betting that larger storage capacity and improved distribution infrastructure will help capture more trading volumes as competition intensifies in the downstream oil sector.
Bigger ambitions
The first tranche consists of 10 million preferred shares priced at P100 each, with an option to sell another 5 million shares if demand proves strong.
The transaction could raise up to P1.5 billion and marks the first drawdown under a five-year shelf registration program covering up to 150 million preferred shares, equivalent to P15 billion.
The structure gives Top Line flexibility to return to the market in stages as expansion opportunities and funding requirements evolve.
—Edited by Miguel R. Camus
