KUALA LUMPUR – The world’s largest medical glove maker Top Glove Corp Bhd has delayed its plans to go ahead with the US$347 million (RM1.5 billion) listing on the Hong Kong stock exchange (HKEX), citing “changing developments in the industry” and current equity market conditions.
In a statement, Top Glove said it is in no hurry to pursue the listing exercise, “to give ourselves more time”.
“We are not in a hurry. Our decision is always for the long-term benefit of the company and our stakeholders.”
Currently, the manufacturer is listed on Kuala Lumpur’s main board, with a secondary listing in Singapore. After the temporary delay in listing in Hong Kong, its shares on the KL board fell 6.3%.
Yesterday Reuters quoted a source as saying that Top Glove had planned to launch the deal last month but it was postponed due to Russia’s invasion of Ukraine that weighed on investor sentiment and heightened market volatility.
On December 8, the company secured the approval from shareholders and had expected it to be completed in the first quarter of this year, expecting to raise RM2.2 billion in capital.
During its EGM, it proposed constitutional amendments to facilitate the proposed Dual Primary Listing to align with the provisions of the relevant laws, listing rules and regulations in Hong Kong.
It also proposed the issuance of new shares of up to 793.5 million new shares, including an additional 103.5 million new Top Glove shares that may be issued under the over-allotment option if exercised in full.
“Upon completion of this exercise, Top Glove shares will be fungible among the three stock exchanges it is listed on, namely Bursa Malaysia Securities, Singapore Exchange Limited, and HKEX, which is a highly liquid and active market,” managing director Datuk Lee Kim Meow had said. – The Vibes, March 9, 2022
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