Start-of-the-year IPO move to enhance support for company expansion
Top Line Business Development Corp. (Top Line) has optimized its total issued and outstanding common shares for its initial public offering (IPO) from the previous minimum of approximately 30% to 20%, following discussions with potential institutional investors.
“We appreciate the interest shown by potential investors in supporting our expansion and growth. As such, we’ve adjusted our offer structure to reflect our adjusted capital requirements, and at the same time maintain regulatory compliance.” Mr. Erik Lim, Top Line’s Chairman, President and CEO, said.
The Company will now offer up to 2,148,440,000 primary common shares with an overallotment option of up to 214,844,000 secondary shares. Assuming the full exercise of the overallotment option, the shares owned by the public will be approximately 22%. Given the adjustment, the Company has also decided to revise the indicative offer price from up to ₱0.78 to up to ₱0.38 per share, subject to a bookbuilding process. At the new offer price of up to ₱0.38 per share, TOP’s total offering, which includes both firm and overallotment option shares, will amount to around ₱900.0 million.
The underwriters expressed confidence in the offering’s structure, believing that the revised offer structure will position Top Line for strong momentum in the public markets.
“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% from 2021 to 2023 – outpacing the growth of constituent companies of the Philippine Stock Exchange index” the Investment & Capital Corporation of the Philippines, the Company’s Issue Manager, Joint Lead Underwriter, and Joint Bookrunner said.
“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,” PNB Capital and Investment Corporation, the Company’s Joint Lead Underwriter and Joint Bookrunner said.
Top Line with ticker symbol “TOP” targets to be listed on the Philippine Stock Exchange by the second quarter of 2025, subject to regulatory approvals.
“We are excited to be the maiden IPO this year and the first company from Metro Cebu to go public in almost a decade. 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,” Mr. Lim added.
