KUALA LUMPUR – Top Glove Corporation Bhd’s plan to list in Hong Kong may have hit a snag due to a US import ban on its products, sources familiar with the matter tell Reuters.
The world’s largest rubber glove maker is seeking to raise US$1 billion (RM4.12 billion) by listing on the Hong Kong Stock Exchange (HKEX) but the deal has stalled as the company awaits indications from the US Customs and Border Protection (CBP) on whether the imports ban on its products would be lifted soon, the newswire reported.
Top Glove, which is already listed in Kuala Lumpur and Singapore, flagged in late April it would sell 793.5 million shares in the listing, half what the company proposed in its application to HKEX in February.
In a reply to The Vibes, the company said: “For regulatory reasons, Top Glove is not able to comment on the listing process. However, Top Glove remains committed to the proposed IPO (initial public offering) in Hong Kong and where appropriate, material developments regarding this will be announced on the relevant stock exchanges.
Reuters said Top Glove had hoped to complete the listing by the end of the second quarter in 2021 but potential investors questioned the company and its advisers on the sanctions during preliminary briefings ahead of the IPO.
CBP barred imports of Top Glove products last year on the back of reasonable evidence at the company’s production facilities across Malaysia indicative of forced labour practices.
The agency said in March it had found evidence of multiple forced labour indicators in Top Glove’s production process, including debt bondage, excessive overtime, abusive working and living conditions, and retention of identity documents, and directed its officials to seize goods from the manufacturer.
The North American market accounts for 22% of Top Glove’s total sales volume, according to the company’s latest accounts. – The Vibes, June 1, 2021
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