Topline redirects IPO proceeds to fuel station expansion

CEBU-BASED fuel retailer Top Line Business Development Corp. (Topline) has reallocated proceeds from its April initial public offering (IPO) to prioritize the expansion of its service station network.

In a regulatory filing on Monday, Topline said its board of directors approved the reallocation of IPO proceeds totaling P624.6 million.

The proceeds were previously earmarked for the construction of service stations and the acquisition of a fuel tanker.

Following a special meeting, the company said it redirected the funds, with the majority now allocated for expanding its service network. It also set aside P214.6 million for working capital and P10 million for general corporate purposes.

Topline said the reallocation is intended to optimize capital deployment by adopting more flexible strategies for expansion, while still including the construction of new service stations.

“As such, the proceeds initially allocated for the construction of new service stations will be reallocated to fund the broader expansion of the service station network,” the company said.

“This shift supports faster market entry and operational scalability while maintaining alignment with the company’s long-term growth objectives,” it added.

Topline said it has secured additional depot space through its existing lessor at a terminal in Mandaue City. The additional storage capacity is expected to enhance operational efficiency and inventory management, reducing the immediate need to invest in a fuel tanker.

“This reallocation is consistent with [Topline’s] ongoing commitment to practical financial management and its strategic focus on maximizing shareholder value,” the company said.

Topline was the first company to conduct an IPO on the Philippine Stock Exchange this year. Its shares, however, declined on their market debut. — Sheldeen Joy Talavera