KUALA LUMPUR (Feb 26): Top Glove Corp Bhd, which has spent RM1.4 billion on share buy-back exercises, is planning to float new shares in Hong Kong to raise up to RM7.7 billion.
In a bourse filling, the world's largest glove manufacturer said the dual primary listing exercise on the main board of Hong Kong Stock Exchange entails the issuance of up to 1.5 billion new shares, representing 18.65% of the group's total issued shares of 8.02 billion. The issue price is to be determined later.
The 1.5 billion new shares also include an additional 195 million shares which may be issued under the overallotment option, if the shares are exercised in full, it noted.
Of the total proceeds of RM7.77 billion, the bulk or RM4.61 billion will be used for expansion of production capacity and developing a data-driven manufacturing system.
RM770 million will be allocated each for research and development, software system upgrade and potential mergers and acquisitions.
Another RM390 million will be utilised for environmental, social, corporate governance practices and initiatives, while the remaining RM390 million will be used for working capital and general corporate purposes.
In a separate statement, in connection with the listing on the HKEX, Top Glove said it will maintain its existing primary listing on the Main Market of Bursa Malaysia and its existing secondary listing on the Main Board of Singapore Exchange Securities Trading Ltd (SGX-ST).
Subject to completion of the proposed dual primary listing, Top Glove shares will be listed and traded on Bursa, SGX-ST, and HKEX and all such shares will be fungible/transferable among these three stock exchanges.
"The proposed dual primary listing is conditional upon, among other things, the approvals from the shareholders of Top Glove and from Securities Commission Malaysia, Bursa Securities, and the Listing Committee of the HKEX," it noted.
Its executive chairman Tan Sri Dr Lim Wee Chai said a dual primary listing in Hong Kong would create an expanded global platform that can enable the group to raise capital for business growth, geographic expansion, and strategic investments and acquisitions.
China International Capital Corp is the sole sponsor for the proposed dual primary listing in Hong Kong while Hong Leong Investment Bank Bhd is the principal adviser for the proposed dual primary listing in Malaysia.
On a separate filing with Bursa Malaysia, Top Glove said it intends to appoint three additional independent non-executive directors, in conjunction with the proposed dual primary listing.
The group intends to appoint three additional independent non-executive directors, namely Tan Siew Boi, Lester Garson Huang, SBS, JP, and Anthony Lo Kai Yiu, subject to the receipt of all required approvals for the proposed dual primary listing.
Tan was an executive director of Standard Chartered Bank (Hong Kong) Ltd and was also its chief executive officer from July 2014 to February 2017. Apart from this, she was also the chairman of The Hong Kong Association of Banks, the ex-officio member of the Hong Kong Trade Development Council and a member of the Currency Board Sub-Committee of The Exchange Fund Advisory Committee of Hong Kong Monetary Authority in 2016.
Huang became a qualified solicitor of Hong Kong in March 1985 and has over 30 years of post-qualification experience. Currently, he is a non-executive director of the Securities and Futures Commission (SFC). He also chairs the Investor and Financial Education Council, a subsidiary of the SFC.
"To the best knowledge of the company, the proposed independent non-executive directors, did not hold any directorship in Malaysian public companies or listed companies."
Top Glove added that they are not related to any director and/or major shareholder of Top Glove, do not have any conflict of interest with Top Glove and do not have any interest in shares of Top Glove or Top Glove's subsidiaries.
Shares of Top Glove closed down six sen or 1.13% to RM5.24, valuing it at RM42.98 billion. There were 41.76 million shares traded.