TOP Glove Corp Bhd is resolute that a dual primary listing (DPL) in Hong Kong will create an additional platform on which the company’s shares can be traded via another established stock exchange.
This is contrary to concerns that a DPL on the Main Board of the Hong Kong Stock Exchange (HKEX) has diluting effect on its earnings per share (EPS) for the financial year ending Aug 31, 2021 (FY2021) to FY2023,
“The listing is expected to broaden and enhance the company’s investor reach and base; to strengthen trading liquidity of its shares; and to provide financing flexibility for future fundraising towards business growth, geographic expansion and strategic investments and acquisitions,” the glove maker pointed out in a media release that contains its 2Q FY2021 financial performance.
For that financial period, the world’s largest glove maker posted a net profit of RM2.9 bil or close to 24 times higher than the corresponding period in FY2020 (2Q FY2020: RM116.01 mil).
On Feb 26, Top Glove announced that it has applied for DPL on HKEX while maintaining its existing primary listing on the Main Market of Bursa Malaysia and its existing secondary listing on the Main Board of Singapore Exchange.
The glove maker further revealed that a portion of the net proceeds raised from the proposed DPL will be invested in Top Glove’s environmental, social and corporate governance (ESG) practices and initiatives.
Delving further on its ESG initiatives, Top Glove said it will also to dedicate resources towards improving worker welfare.
In the quest to be a model of best practices within the glove industry, the glove maker said it has taken significant steps to improve and implement detailed plans in five key areas, namely:
- Fair practices in the recruitment of foreign workers;
- Continuous improvement of workers’ accommodation;
- Fair working hours and wages for workers;
- Continued safety and health of its workforce; and
- Implementing more stringent COVID19 preventive measures.
“Impactt, an independent consultant, has also confirmed that there is no element of systemic forced labour in Top Glove,” the glove maker added. – March 9, 2021