Top Glove eyes Hong Kong listing

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KUALA LUMPUR (Sept 17): Top Glove Corp Bhd is planning a listing in Hong Kong by 2021 to enhance the rubber glove manufacturer's investor reach and diversify its investor base.

Top Glove executive chairman Tan Sri Dr Lim Wee Chai said Top Glove, which is already listed on the Malaysia and Singapore bourses, is expected to be listed on The Stock Exchange of Hong Kong “in the next six to nine months”.

“Listing in Hong Kong is a good target and good direction. Going into a bigger market is good for Top Glove. As a global company we need to expand into a bigger market, so the group is visible to the world market.

“We are talking to bankers to see which is the most suitable method to go for listing in Hong Kong,” said Lim, who was speaking at a virtual press conference today in conjunction with the announcement of Top Glove’s fourth quarter and full-year financials.

The planned Hong Kong listing is expected to create and add value to Top Glove’s business, according to Lim.

“Hong Kong is a big market and we are always looking for higher value add in a bigger market.

“We also like to create demand for our company shares by going into bigger markets. We always create value and demand for products and company shares,” Lim said.

Earlier today, Top Glove reported that its fourth quarter net profit rose substantially to RM1.29 billion from RM74.17 million a year earlier as revenue more than doubled.

In a statement to Bursa Malaysia today, Top Glove said revenue rose to RM3.11 billion in the fourth quarter ended August 31, 2020 (4QFY20) from RM1.19 billion.

For the full-year, Top Glove said cumulative FY20 net profit climbed to RM1.87 billion from RM364.68 million a year earlier while revenue was higher at RM7.24 billion versus RM4.8 billion.

For 4QFY20, the company declared a dividend of 8.5 sen a share, which brings full-year dividends to 11.83 sen a share.

At Bursa today, Top Glove’s share price closed down 64 sen or 7.59% at RM7.79 at 5pm for a market value of RM63.4 billion. The stock saw some 199 million shares traded.

Chong Jin Hun