Top Line defers IPO until Q1/25

Top Line Business Development [TOP] [link] was scheduled to price its IPO yesterday, which was tentatively slated to list on December 12, but instead notified that its ownership group has elected to “adjust [its] IPO timetable” to allow potential investors to “secure internal approvals to participate in the IPO.” TOP said that it was “happy” with the reception it received from its “engagement with qualified institutional buyers” during the IPO process, but said that the delay will allow it to include its year-to-date (9M) financial performance data in its prospectus, “which would demonstrate [TOP’s] consistent growth trajectory”. 

MB bottom-line: There are a lot of moving pieces in an IPO. I don’t have any special inside info to comment on TOP’s institutional investors needing more time to obtain internal clearances, but that sort of delay is relatively common in the institutional investing world. Private and public funds take meetings all the time on potential investments, but most require some formal approval process with an internal group (usually called an “Investment Committee”) that can result in delays as the usual logistics challenges come up, like getting five powerful people to be in the same room at the same time to hear the presentation. So I could see a situation where a fund showed late interest in getting involved, but couldn’t commit before the scheduled IPO, so TOP delayed the IPO to allow that fund (or group of funds in similar positions) to participate. I could see that. I could also see the owners wanting to push the deal off into a time when the PSEi isn’t melting before our very eyes, too. The PSEi has dropped over 7% since this IPO was approved at the end of October. Maybe everyone just wants a chance for all the uncertainty to work its way out of the system first before getting something done that can’t be undid?

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