Top Glove slashes Hong Kong stock offering to RM4.22bil 

KUALA LUMPUR: Top Glove Corp Bhd has slashed the amount it planned to raise from its proposed listing of new shares in Hong Kong by almost half, as the Covid-19 vaccine rollout worldwide sapped investors’ appetite for glove stocks.

The world’s biggest glove company on Thursday said it will reduce the number of new shares to be sold to investors in Hong Kong to 793.5 million shares compared with 1.495 billion shares it had originally planned in February.

Shares in Top Glove has fallen 35% over the past six months, despite record quarterly profits, as investors expect that the recent surge in glove selling prices would be short lived.

The stock was under pressure since the US, its most important market, imposed a ban on its products in March.

“The revision to the number of new Top Glove Shares proposed to be issued under the Proposed Issuance of New Shares above takes into consideration the best interest of the existing shareholders of the Company by minimising dilution to existing shareholders respective shareholdings,” Top Glove said in a filing with Bursa Malaysia today.

The reduced number of shares to be issued would amount to 9.9% of its total issued share capital.

The company now expect to raise HK$7.94bil, or RM4.22bil from the new share sale exercise.

In February, Top Glove announced a plan to raise as much as RM7.7bil by selling new shares to be listed in Hong Kong.