THE SECURITIES and Exchange Commission (SEC) has approved the planned P2.87-billion initial public offering (IPO) of Cebu-based fuel retailer Top Line Business Development Corp. (Topline).

The IPO will consist of up to 3.68 billion primary common shares at a maximum price of 78 centavos per share, and an overallotment option of 368.31 million secondary common shares, the corporate regulator said in an e-mailed statement on Wednesday.

The offer period will be from Nov. 6 to 12, with listing on the main board of the Philippine Stock Exchange by Nov. 22, according to the company’s latest timeline sent to the SEC.

The commission en banc approved Topline’s registration statement during a meeting on Oct. 8.

Topline aims to generate up to P2.75 billion in net proceeds from the sale of primary offer shares, which will fund the construction of fuel depots and service stations, acquisition of fuel tankers and tank trucks, working capital, as well as for general corporate purposes.

The company will not receive proceeds from the exercise of the overallotment option.

Investment & Capital Corp. of the Philippines and PNB Capital and Investment Corp. were appointed as the joint lead underwriters and joint bookrunners for the offer.

Topline started commercial fuel trading operations in 2017, mainly in Central Visayas. The company operates a retail distribution network via fuel station chain Light Fuels.

The company aims to have ten operating service stations this year. Its commercial fuel trading operations cater to customers with requirements of at least 4,000 liters per order in transportation, construction, shipping, and mining, among others.

For the first half, the fuel retailer’s net income jumped to P60.6 million from P20.8 million a year ago. Gross revenues increased 15% to P1.56 billion. — Revin Mikhael D. Ochave