THE Securities and Exchange Commission (SEC) has approved a P2.87-billion initial public offering (IPO) by Cebu-based fuel retailer Top Line Business Development Corp.

"In its meeting on October 8, the commission en banc resolved to render effective the registration statement of Top Line covering 3,683,100,000 common shares, subject to the company's compliance with certain remaining requirements," the SEC said.

The offer shares will have a maximum price of P0.78 apiece, with an additional 368.3 million secondary common shares owned by selling shareholders as part of an overallotment option.

The company is expected to net up to P2.75 billion from the primary share share. It will not receive proceeds from the overallotment option.

Proceeds from the IPO will be used for the construction of fuel depots and service stations, acquisition of fuel tankers and tank trucks, working capital, and general corporate purposes.

Based on a preliminary prospectus, Top Line will use P980 million for the construction of fuel depots in Mactan and Bohol that will have a combined storage capacity of 30 million liters.

Start of construction is planned for next year, and the depots are expected to be operational by mid-2026.

Top Line will also develop 10 light fuel service stations starting in 2025, which are intended to be operational by 2025-2026.

Two units of compartmentalized fuel tankers with a capacity of 5 million liters, along with 40 tank trucks with rated capacities of at least 20,000 liters, will be purchased to complement the firm's fuel logistics platform.

Meanwhile, P937.5 million of the net proceeds will be allocated for working capital.

Based on the latest timeline submitted to the SEC, the IPO will run from November 6 to 12. Listing of the shares at the Philippine Stock Exchange is scheduled for November 22.