How Topline is targeting underserved consumers in Central Visayas --[Reported by Umva mag]

By Sheldeen Joy Talavera, Reporter

CEBU-BASED fuel retailer Top Line Business Development Corp. (Topline) is accelerating its expansion plans to address the needs of underserved consumers across Central Visayas, its president said.

“For us, since we’re still developing the brand and everything else, we’re looking at focusing on that scenario of getting the two-wheeler and the light vehicles — that niche market,” Eugene Erik C. Lim, president and chief executive officer (CEO) of Topline, said in an interview with BusinessWorld.

Citing data from the Land Transportation Office, he said that about 68% of road users in Cebu are motorcycles.

“I think the important thing is how do the customers get access to the product so that they can be more efficient also,” he said.

Topline started in the leasing and real estate business but eventually entered the fuel industry in 2017 and is now active in commercial trading, depot operations, and retail fuel in the Visayas region.

Through its subsidiary engaged in the fuel retail sector, Light Fuels Corp., the company introduced its first service station in Mandaue City, Cebu last year.

The company has allocated approximately P210 million to finance the construction of its nine fuel stations to expand its footprint this year, in line with its target of having 10 operating service stations this year.

“The expansion strategy right now is actually Central Visayas. And then, to be more specific, it’s really more of Metro Cebu, and then now… it’s slowly going to the (Cebu) province,” Mr. Lim said.

“The beauty there is it’s basically the niche strategy that we’re looking at for the Light Fuels Express station,” he added.

Mr. Lim said that the Light Fuels Express station is “something fresh for the industry soon” as it is targeting the two-wheeler and light vehicles.

The brand is the company’s planned small-footprint fuel station that is designed to accommodate the “fast-growing niche” in the region.

In August, Topline announced that it was proposing to conduct its initial public offering (IPO) in November, with plans to raise up to P3.2 billion.

The company intends to offer up to 3.68 billion primary common shares, with an additional overallotment option of up to 368.31 million secondary common shares, at an indicative price of up to P0.78 per share.

It submitted a registration statement and listing application to the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) in connection with its planned IPO.

Last week, Topline secured approval from the SEC for its proposed IPO.

“Quite happy with the regulators for supporting the listing, and then, hopefully soon, we already presented with the PSE so we’re just waiting for the clearances from the regulators,” he said.

“But so far, based on our timetable, we’re still looking at the November listing. But still, crossing our fingers.”

Topline’s IPO is scheduled to run from Nov. 6 to 12, with listing on the main board of the PSE slated for Nov. 22.

The proceeds from the sale of primary shares will be used for the construction of fuel depots and service stations, acquisition of fuel tankers and tank trucks, working capital, as well as general corporate purposes.

If realized, Topline will be the fourth company to go public this year following three IPOs composed of OceanaGold (Philippines), Inc., Citicore Renewable Energy Corp., and NexGen Energy Corp.

Among the challenges that oil companies are watching at present are the geopolitical tensions in the Middle East.

With the Philippines being a net importer of petroleum products, Mr. Lim said that it would be better to have more capacity in the industry.

“If you think about it, there’s enough capacity right now, but if there’s demand growth for the next few years… there has to be more capacity so that there won’t be, hopefully, no supply shocks,” he said.

“In the event there would be some calamities coming in or even the geopolitical risk, we have inventory to support that,” he added.

The following news has been carefully analyzed, curated, and compiled by Umva Mag from a diverse range of people, sources, and reputable platforms. Our editorial team strives to ensure the accuracy and reliability of the information we provide. By combining insights from multiple perspectives, we aim to offer a well-rounded and comprehensive understanding of the events and stories that shape our world. Umva Mag values transparency, accountability, and journalistic integrity, ensuring that each piece of content is delivered with the utmost professionalism.