TOP Line Business Development Corp. has filed a registration statement with the Securities and Exchange Commission (SEC) for a follow-on offering of up to P1.5 billion worth of perpetual preferred shares.
In two successive disclosures, the company said the offering would consist of up 10 million preferred shares worth up to P1 billion, with an oversubscription option of up to 5 million preferred shares worth up to P500 million, at a price of up to P100 per share, subject to regulatory approvals.
The offering is planned for June 11 once the relevant approvals are received. The offer period is expected to run from May 19 to June 1.
Earlier in the day, it informed the bourse that it had filed for a shelf registration with the SEC of up to 150 million perpetual preferred shares.
The company said expected to raise up to P1.50 billion in proceeds, to be used to support supply chain optimization and fuel its vertical integration strategy.
Part of the proceeds will be used to expand its depot infrastructure and storage capacity to accommodate higher import volumes and complement the continued expansion of Light Fuels Corp., its retail fuel subsidiary.
“The preferred share issuance marks an important step in strengthening our capital base while providing stable returns for our investors through fixed dividends,” company Chairman, President and CEO Eugene Erik Lin said.
“As we build on the momentum from our initial public offering last year, this fundraising will support our vertical integration strategy by enhancing supply chain capabilities, expanding our retail network and improving procurement flexibility,” he added.
PNB Capital and Investment Corp. is the sole issue manager and with Security Bank Capital is also lead underwriter and bookrunner.
Top Line shares on Monday shed P0.08 to settle at P1.42 apiece.
