Friday 29 Mar 2024
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KUALA LUMPUR (Nov 16): Top Glove Corp Bhd has purchased RM69.93 million worth of shares in its latest share buy back exercise today, marking the fifth consecutive trading day that it has engaged in share buy back this month.  

The rubber glove manufacturer disclosed in a bourse filing that it bought the lot — 9.57 million shares — at between RM7.20 to RM7.51 apiece. Its cumulative net outstanding treasury shares to date now stand at 95.25 million shares, which is equivalent to a 1.14% stake.

Top Glove has spent RM349.37 million so far this month — which is more than its net profit of RM227.11 million for the first six months of its financial year ended Aug 31, 2020 (1HFY20) — to buy 45.39 million of its own shares.

This is on top of the RM355 million it forked out in September for share buybacks.

Altogether, it has now spent RM704.43 million to buy back its shares since September, which translates to a cash per share of about 8.59 sen per share, had it used the amount for a dividend payout, based on its share capital of 8.196 billion shares.

Top Glove shares have surged since the pandemic outbreak, following greater demand for its gloves as a result of the COVID-19 pandemic. Recent positive developments in the potential discovery of a COVID-19 vaccine, however, have led to a selldown of Top Glove's shares, together with that of other rubber glove makers.

In addition, the Malaysian government announced that the group's worker dormitory in Klang, Selangor, where it housed over 13,000 workers, has now been placed under an Enhanced Movement Control Order (EMCO) from Nov 17 to Nov 30, due to the high number of COVID-19 cases present there.

Top Glove shares sank 7.46% or 58 sen to close at RM7.20 today, making it the fourth top loser on the local stock exchange, after 79.76 million shares were traded. It now has a market capitalisation of RM59.01 billion. Year to date, however, the stock is still up 359% from when it was trading at RM1.57.

Edited ByTan Choe Choe
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