Visayas-based fuel trader and retailer Top Line Business Development Corp. on Wednesday said it is investing some P385.12 million in its fuel importation and distribution businesses.
In a disclosure, Topline said its board of directors has approved the additional investment of P185.63 million in its subsidiary-Topline Logistics and Development Corp.-through the subscription of 1.86 million common shares. It maintains its 75 percent ownership in the company.
‘The increase in capital stock. is intended to support the scale of operations expected from its import activities, in line with the issuance of its certificate of registration from the Bureau of Customs,’ Topline said.
The firm’s board also approved the additional investment of P199.5 million in Light Fuels Corp., equivalent to a subscription of 1.99 million common shares, maintaining its 99.75 percent ownership.
The increase in the authorized capital stock of Light Fuels is expected to strengthen its financial position in support of its retail network expansion program.
The company is also reclassifying 800 million of its common shares, with a par value of P0.10 apiece, into the same number of preferred shares, also with a par value of P0.10 apiece.
The reclassification, subject to the approval of the company’s shareholders and the Securities and Exchange Commission, is intended to provide Topline with flexibility in the issuance of shares.
‘The terms and conditions of the issuance of the preferred shares have yet to be finalized. The company shall inform the investing public of such terms and conditions as soon as discussed and approved by the board of directors of the company.’
Topline said it is hopeful that 2025 will be a banner year for the company as its fuel retailing business expands. It grew substantially just months after the company’s maiden offering on the Philippine Stock Exchange.
Eugene Erik Lim, Topline chairman, president and CEO, said the company expects both income and revenues to post a significant growth because of its fuel retailing business.
‘We’re hoping it can be a banner year. From three stations last year, that is, hopefully, 50 (51) stations this year. So, it’s really a banner year in terms of revenue growth or topline growth or income because of the acquisition,’ he said.
This follows after the company announced over the last two weeks that it is acquiring 38 fuel retailing stations around Visayas.
The 38 retail fuel stations were acquired from Total Oil and Gas Resources Inc. and Ballston Metro Corp. located across various areas in Cebu, Leyte, Siquijor and Negros Oriental, as well as a 2-million liter depot facility; and 15 fuel tanker trucks.