LISTED fuel distributor and retailer Top Line Business Development Corp. has secured regulatory approval for a preferred share offering worth up to P1.5 billion, with proceeds earmarked for expansion projects and working capital requirements.
In a disclosure on Thursday, Top Line said the Securities and Exchange Commission on June 3 granted the company an order of registration and permit to sell covering up to 15 million perpetual preferred shares, consisting of 10 million shares worth P1 billion and an oversubscription option of up to 5 million shares valued at P500 million.
Top Line has set the initial dividend rates for the offer at 9.1325 percent per year for Series A-1 preferred shares and 9.5981 percent per year for Series A-2 preferred shares.
The shares, priced at P100 apiece, will be offered from June 4 to 16 and are scheduled to be listed on the Philippine Stock Exchange’s main board on June 26 under the trading symbols TOPA1 and TOPA2.
“We see this follow-on offering as a natural extension of the growth momentum we began with our initial public offering last year, as we continue to execute our vertical integration strategy and invest in infrastructure that strengthens our long-term competitiveness,” Top Line Chairman, President and CEO Eugene Erik Lim said.
The Cebu-based company expects to raise gross proceeds of about P1 billion from the base offer and as much as P1.5 billion should the oversubscription option be fully exercised.
Top Line said up to P1 billion of the proceeds will be allocated to working capital requirements related to fuel importation, including petroleum product procurement, shipping and freight expenses, and other operational costs.
Meanwhile, up to P440 million will be used for the construction and renovation of fuel storage depots with a capacity of up to 40 million liters, and the remainder will be used for general corporate purposes.
Lim said the fundraising seeks to support the company’s long-term expansion plans while helping strengthen fuel supply availability in the Visayas.
“At the same time, we are strengthening Philippine energy security by ensuring reliable fuel access in the Visayas,” he said.
The preferred shares will pay cash dividends quarterly, subject to board approval, with the first payment scheduled on Sept. 26.
PNB Capital and Investment Corp. is acting as sole issue manager, while PNB Capital and Security Bank Capital Investment Corp. are serving as joint lead underwriters and joint bookrunners for the transaction.
Top Line listed on the Philippine Stock Exchange in 2025 and noted that it has declared a total of P93.69 million in dividends for common shareholders since its market debut.
The company’s shares on Thursday were unchanged at P1.40 each amid a 0.69-percent drop for the benchmark Philippine Stock Exchange index.
