MANILA, Philippines – Cebu-based fuel firm Top Line Business Development Corporation made its stock market debut on Tuesday, April 8, a day after global markets fell amid US President Donald Trump’s reciprocal tariffs against other countries.
Top Line is now listed with the Philippine Stock Exchange (PSE) under ticker name “TOP,” and made its initial public offering (IPO) of 2.1 billion primary shares priced at P0.31 apiece, with an overallotment option of up to 214.8 million secondary shares.
The offering was oversubscribed amid strong market interest, raising P732.6 million for the Cebu-based fuel retailer. Oversubscription occurs when demand exceeds the shares available.
Proceeds of the IPO will be used to fund the expansion of Top Line’s retail segment, Light Fuels, as well as purchase a new 5-million-liter fuel tanker.
PSE president Ramon Monzon noted that Top Line is the sixth Cebuano firm to ever go public, and the first Cebu-based stock market debut since real estate firm Cebu Landmasters in 2017.
Monzon also acknowledged the benchmark index’s tumble on Monday, April 7, amid Trump’s “Liberation Day” tariffs. The benchmark index PSEi tumbled 4.3% in Monday trade, falling to 5,822 level.
“Less-than-stellar market conditions and every imaginable headwind are among the realities that publicly listed firms have to contend with. But I believe Top Line can navigate these headwinds in the financial markets,” he said during Top Line’s listing ceremony.
“It knows first-hand about seizing opportunities during tough times, since it started its subsidiary, Light Fuels Corporation, five months into the pandemic in July 2020.”
Top Line’s president and chief executive officer Erik Lim hopes that his company’s listing can pave the way for other companies outside Metro Manila to list in the local bourse in the future.
“Rest assured that Top Line is committed to maximizing our investors’ shareholder value. And at the same time to give more fresh ideas to the industry, to innovate and incorporate more technologies to our supply chains and expansion network, and to make it even more efficient and future-ready,” he said.
In the first nine months of 2024, Top Line’s net income jumped 157% to P90.5 million, with its revenues growing 9.1% to P2.1 billion.
The PSEi rebounded on Tuesday trade, closing 3.15% higher and returning to the 6,000 level. – Rappler.com