CEBU-BASED fuel retailer Top Line Business Development Corp. (Top Line) has secured board approval to raise capital through the reclassification of 800 million common shares into preferred shares.
At a special stockholders’ meeting on Tuesday, the company’s board greenlighted the initiative, which may include private placements, follow-on offerings, or debt issuances.
“Our growth trajectory is clear and compelling. The issuance of preferred shares provides investors with steady returns through fixed dividends, while allowing us to strengthen our balance sheet and accelerate our supply chain integration strategy. We intend to undertake capital-raising activities, targeting next year, 2026,” Top Line Chairman, President, and Chief Executive Officer Eugene Erik C. Lim said.
While the company did not disclose the target amount, it said the proceeds are intended to optimize its supply chain as it prepares to start direct fuel importation through its subsidiary, Top Line Logistics and Development Corp.
The company said the initiative is expected “to provide better pricing, improve supply stability, capture better margins, and enhance efficiency across the company’s fuel businesses.”
Top Line added that it is planning to expand depot infrastructure and storage capacity to accommodate increased import volumes.
“These initiatives aim to enhance operational efficiency, reduce landed costs and overall operating expenses, improve our profitability, and ultimately create greater long-term value for our shareholders,” the company said.
The fundraising is also expected to support the growth of Top Line’s retail fuel arm, Light Fuels Corp., as it expands its network to increase market share across the rapidly growing Visayas region.
For the third quarter, Top Line reported a 21.1% year-on-year increase in net income to P109.57 million, while gross revenues rose 26.9% to P3.09 billion.
“We have already surpassed our full-year 2024 net income, and we remain optimistic heading into the final quarter. As we continue to renovate and integrate our newly acquired retail stations, we expect stronger and more diversified revenue,” Mr. Lim said.
On Tuesday, Top Line closed at P1.69 per share, down P0.19 or 10.11%. — Sheldeen Joy Talavera
