Top Line plans preferred share issue for fuel expansion

Insider Spotlight

• Shareholders approve reclassifying 800 million unissued common shares into preferred shares
• Board gets green light to tap private placement, follow-on offer or debt
• Proceeds to fund direct fuel importation, depot buildout and retail network growth across Visayas  

Top Line Business Development Corp. (TOP), a Cebu-based listed fuel distributor and retailer, is gearing up for a major capital-raising push after shareholders approved the reclassification of 800 million unissued common shares into preferred shares.  

Driving the news

At a special stockholders’ meeting on Dec. 2, 2025, shareholders backed the move and empowered the Board of Directors to pursue capital-raising options, including a private placement, follow-on offering or debt issuances.

Why it matters

The shift to preferred shares gives TOP a new fundraising tool designed to appeal to income-seeking investors via fixed dividends, while supplying fresh capital to support its aggressive growth and vertical integration strategy in the Visayas fuel market.

What they’re planning

Proceeds from the preferred share issuance will help TOP start direct fuel importation through its subsidiary Topline Logistics and Development Corp. (TLDC). The company expects the move to improve pricing, stabilize supply, capture better margins and boost efficiency across its fuel operations. 

TOP also plans to expand depot infrastructure and storage capacity to accommodate higher import volumes and support its retail arm Light Fuels Corp. (LFC) as it grows its station network in the region.

What they’re saying

“Our growth trajectory is clear and compelling. The issuance of preferred shares provides investors with steady returns through fixed dividends, while allowing us to strengthen our balance sheet and accelerate our vertical integration strategy," chair, president and CEO Eugene Erik Lim said in a disclosure to the Philippine Stock Exchange.

"We intend to undertake capital-raising activities, targeting next year, 2026,”  Lim said.

“These initiatives aim to enhance operational efficiency, reduce landed cost and overall operating costs, and improve our profitability and ultimately creating greater long-term value for our shareholders. We are confident that this direction places Top Line in a stronger strategic position, one that allows us to integrate vertically, capture more value from the supply chain, and deliver higher margins and more resilient income streams,” he added.

The big picture

TOP currently operates across commercial fuel trading, depot operations and retail fuel in the Visayas, primarily through TLDC and LFC. Management is betting that a stronger balance sheet plus control of more of the fuel supply chain will underpin sustained growth and more predictable earnings for shareholders.  —Daxim L. Lucas | Ed: Corrie S. Narisma