AS the COVID-19 pandemic boosted demand for protective rubber gloves worldwide, Malaysia’s top disposable medical glove maker, Top Glove Corporation Bhd has submitted a listing application to apply for the primary listing of its shares on the Main Board of the Stock Exchange of Hong Kong (HKEX).
The glove producer has proposed to raise about HK$14.95 bil (RM7.81 bil) by issuing up to 1.50 billion shares via a secondary listing on HKEX.
To re-cap, back in October, the glove maker was already evaluating its plan for a dual primary listing on the HKEX and is said to be considering to raise more than US$1 bil from the listing exercise.
“During these extraordinary times, Top Glove has swiftly responded to heightened demand by our customers worldwide for our quality gloves and personal protective equipment (PPE),” its executive chairman Tan Sri Dr Lim Wee Chai commented.
According to Top Glove, a dual primary listing in Hong Kong would create an expanded global platform that can enable the group to raise capital for business growth, geographic expansion, and strategic investments and acquisitions.
“We aim to increase our production capacity, upgrade our facilities, and invest in new technologies to improve our offering and response time for our customers around the world which will help to further strengthen our position as the world’s largest manufacturer of gloves and to enhance stakeholders’ long-term value,” Lim elaborated.
The additional primary listing is able to provide the group with an expanded platform to finance and accelerate its initiatives which include pursuing technology driven improvement that emphasises on increasing quality, efficiency, and innovation across Top Glove’s production processes, digital and data analysis systems, and product range.
As for the net proceeds raised from the proposed dual primary listing, a portion of it would be invested in Top Glove’s environmental, social and corporate governance (ESG) practices and initiatives.
The actual amount of proceeds to be raised from the proposed dual primary listing will depend on the number of new Top Glove shares to be issued and the final issue price of the new Top Glove shares pursuant to the proposed dual primary listing.
Meanwhile, Top Glove will maintain its existing primary listing on the Main Market of Bursa Securities Malaysia and its existing secondary listing on the Main Board of Singapore Exchange Securities Trading Limited (SGX-ST).
Subject to completion of the proposed dual primary listing, Top Glove shares will be listed and traded on Bursa Malaysia, SGX-ST, and HKEX and all such shares will be fungible/transferable among these three stock exchanges.
Details regarding the process to transfer shares among these three stock exchanges and the fees payable will be provided in due course.
The proposed dual primary listing is conditional upon, among other things, the approvals from the shareholders of Top Glove and from Securities Commission Malaysia, Bursa Securities, and the Listing Committee of the HKEX.
Top Glove closed today’s trading 6 sen or 1.13% lower at RM5.24 with 41.76 million shares traded , thus valuing the company at RM42.98 bil. – Feb 26, 2021
