There’s no stopping Top Line Business Development Corp. (Top Line in its plan to embark on its initial public offering (IPO).
The company intends to capitalize on the ₱1.38 trillion-worth combined economy of Central Visayas, alongside a robust 9.02% fuel consumption growth rate in Cebu Province. This planned use of IPO for expansion is supported by data from an independent study by the University of Asia and the Pacific (UA&P), highlighting the promising fuel demand in Central Visayas.
UA&P’s study, commissioned by Top Line to provide deeper insights into its market position, draws on consolidated government data and industry metrics. It indicates that Central Visayas’ gross domestic product grew by 7.46% year-on-year, outpacing the national GDP growth rate of 5.5% in 2023. The region composed of Cebu, Bohol, Negros Oriental, and Siquijor, is also considered the largest regional market outside Luzon with a gross regional domestic product of ₱1.38 trillion and 6.45% share to total Philippine GDP.
The study further notes that diesel consumption in Cebu increased by 8.75% to 542.7 million liters in 2022, up from 499 million liters in 2021. For perspective, Top Line sold 35.4 million liters of diesel in 2022 and an impressive jumped to 59% or 56.2 million liters of diesel sold in 2023.
Top Line’s rapid growth is reflected in its compounded annual growth rate of 49.17% in revenues from 2021 to 2023, driven by strong management focused on cost competitiveness and customer service.
Speaking to the media, Mr. Erik Lim, Top Line’s Chairman, President and CEO said, “In our meetings with our investors, we have emphasized our results-driven approach and our rapid growth trajectory. Our IPO will help us pursue our vertical integration strategies in Central Visayas.”
Meanwhile, as part of its synergy strategy with its affiliate companies, Top Line is also launching the Light Rewards App. Primarily a mobile-based application, users are awarded points for purchases made in Light Fuels stations, Top Line’s retail fuel arm, as well as other retail customer-facing segments of the Topline Group. These points can then be redeemed for discounts, free products, and for special offers. Light Rewards allows users to track their points balance and rewards status.
“The Light Rewards App is our customer loyalty rewards program across our diversified affiliate companies, strengthening our Top Line brand and customer base retention. Our ability to synergize with our other businesses provides impetus for our dynamism and fuels our revenue streams,” Mr. Lim said.
She underscores that the company and its subsidies will embark on this ambitious and dynamic long term plan will a clear end in mind successful results.
Top Line will offer to the public up to 3,683,100,000 primary common shares with an overallotment option of up to 368,310,000 secondary common shares. It is expected to raise up to P2.75 billion in net proceeds from the sale of primary offer shares at an indicative offer price of up to ₱0.78 per share subject to a bookbuilding process.
The Philippine Stock Exchange has issued a notice of approval for Top Line’s IPO with the ticker symbol “TOP.” Set to be the country’s fourth IPO of the year and the first company from Metro Cebu in seven years, Top Line’s target listing date is on December 12, 2024, subject to PSE’s post-approval conditions and the issuance of the Permit to Sell by the SEC.
