KUALA LUMPUR (March 14): Top Glove Corp Bhd proposed to undertake the secondary listing of and quotation for all the company's existing shares, which are listed in the Main Market of Bursa Malaysia, to the Main Board of the Singapore Stock Exchange (SGX-ST) by way of introduction.

According to the filing to Bursa Malaysia, a shareholder holding Top Glove shares listed on Bursa Malaysia may transfer such shares to SGX-ST and vice versa for trading on the respective stock exchanges following the proposed secondary listing. The proposed secondary listing will not involve any issuance of new Top Glove shares.

The transfer is subject to the fulfilment of transfer conditions and criteria, the announcement said.

Top Glove also intends to explore with its substantial shareholders the possibility of selling a portion of their shareholdings in the company of approximately S$20 million, or RM59.4 million, in value on the open market in Singapore.

Top Glove explained that the proposed secondary listing "is expected to enhance Top Glove's investor reach and diversify its investor base as well as allow direct participation by investors in Singapore in the equity of Top Glove".

Trading liquidity of the stock is also expected to increase with Singapore being widely recognised as a global financial hub, supported by high level of participation from international investors.

With the proposed secondary listing, it enables Top Glove to tap into a new platform for potential future fundraising as well as merger and acquisition exercises.

"It enhances the visibility of Top Glove's profile among international investors, analysts and media, thereby potentially resulting in stronger brand awareness for Top Glove," it said.

In conjunction with the secondary listing announcement, the glove manufacturer has also proposed the amendments to the Articles of Association of Top Glove to facilitate the proposed secondary listing.

The company also said that there will not be any effect on the issued and paid-up share capital and the shareholdings of the substantial shareholders as no new shares will be issued pursuant to the proposals.

The proposals are conditional upon approvals from the Securities Commission of Malaysia for the proposed secondary listing, the SGX-ST for the eligibility-to-list on the main board of SGX-ST, the shareholders of Top Glove for the proposed amendments to the Articles of Association, and other relevant authorities if required.

The submission to the relevant authorities in Malaysia and Singapore is expected to be made within three months from the date of announcement and expected to completed by the third quarter of 2016.

As of closing, Top Glove shares were down by 23 sen or 2.21% at RM5.32 with a market capitalisation of RM6.66 billion.