World’s biggest rubber glove maker to raise up to US$1.9 billion in Hong Kong listing as coronavirus boosts demand
- Malaysia’s Top Glove plans to issue 1.49 billion new shares as part of Hong Kong listing
- Company already listed in Malaysia, Singapore
Top Glove, the world’s biggest maker of rubber gloves, said on Friday that it plans to raise as much as US$1.9 billion in a long-expected primary dual listing in Hong Kong.
The Malaysian company plans to issue 1.49 billion new shares at a price to be set later, raising up to HK$14.9 billion if an overallotment of shares is fully exercised. The company, which has seen demand for its disposable gloves soar during the coronavirus pandemic, is already listed in Malaysia and Singapore.
The offering would consist of a Hong Kong retail tranche and an international placing of new Top Glove shares. The company said it would file additional listing documents with the Hong Kong stock exchange at a later date.
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Top Glove said it plans to use the proceeds in part to expand its production capacity, fund research and development and pursue potential mergers and acquisitions.
The company said it wants to increase its annual production capacity to 193 billion gloves by the end of 2025, including building eight new factories in Malaysia to produce mainly nitrile latex gloves in the next three years.
Top Glove’s shares hit record highs last summer as the coronavirus pandemic closed businesses and schools in major economies around the world, but have been hit hard as vaccines have begun to roll out this year. The company’s shares declined 22 per cent this month in Malaysia.
“Top Glove remains hopeful of an effective vaccine to address the dire situation and is encouraged by reports of developments and progress made in recent days. However, even with a vaccine, gloves will still be needed for testing and administering the vaccine,” the company said in its filing.
“Pre-pandemic, global glove demand was already growing about 10 per cent and is expected to continue to grow steadily driven by strong market fundamentals across all geographies.”
Hong Leong Investment Bank Berhad is serving as the company’s principal adviser on the listing.
