Top Glove mulls dual listing on HKEx

by NUR HAZIQAH A MALEK / pic by MUHD AMIN NAHARUL

RUBBER glove manufacturer Top Glove Corp Bhd clarified that the company is evaluating a possible dual primary listing on the Hong Kong Stock Exchange (HKEx).

In a filing to Bursa Malaysia yesterday, the company noted that the structure of the proposed listing has not yet been finalised.

“More details in relation to the proposed HKEx listing will be made available in due course, if and when the board finalises the plan and approves the proposed HKEx listing.

“The listing, if undertaken, will enable Top Glove to be present in a larger, more active and liquid stock exchange, enlarge and diversify its investor base, and also provide an alternate and larger fundraising platform to support the company’s future growth strategy,” it said.

The listing will also be subject to approvals from all the relevant authorities in Malaysia, Singapore, Hong Kong and other applicable jurisdictions.

It was reported that the rubber glove maker is considering raising more than US$1 billion (RM4.15 billion) from the listing and was in talks with bankers on its Hong Kong listing, a process that is expected to take six to nine months, according to its executive chairman Tan Sri Dr Lim Wee Chai (picture).

For its first quarter ended Nov 30, 2019, Top Glove turned in a net profit of RM111.43 million and a sales revenue of RM1.21 billion, turning a high profit which was attributed to better contributions from both its nitrile and natural rubber glove segments.

Maybank Kim Eng Securities Pte Ltd last week noted that Top Glove might be under the spotlight now for environmental, social and governance risks, but such risks should fall over the years.

Its share price also surged in the country due to the high demand for medical protective gear amid the coronavirus pandemic, from RM1.55 on Jan 2, 2020, to RM8.97 at 4.30pm yesterday.