KUALA LUMPUR, Sept 18 — Top Glove Corporation Bhd is planning a listing in Hong Kong by 2021 to broaden the group’s investor reach as well as to diversify its investor base.
Currently, the glove manufacturer is listed on the Malaysian and Singapore bourses.
Executive chairman Tan Sri Dr Lim Wee Chai said Top Glove is expected to be listed on The Stock Exchange of Hong Kong Ltd in the next six to nine months.
“The Hong Kong stock exchange, with a market capitalisation of US$5.5 trillion, is more than nine times that of Malaysia or Singapore. There is a big market, they always look for higher value (companies) in the bigger market just like the glove business,” he said.
Lim was speaking at a press and analyst briefing on the group’s performance ended Aug 31, 2020 yesterday.
He added that the Hong Kong listing would add value to the company, which is in the midst of talking to bankers to see the most suitable method for the listing exercise.
Meanwhile, Top Glove targets to produce another 100 billion pieces of gloves over the next six years.
The group has earmarked RM8 billion for capital expenditure over the next six years to be invested in several key areas.
These include new capacity, enhancement of existing manufacturing facilities, industry 4.0 initiatives, a gamma sterilisation plant, land bank for future expansion, IT upgrades and workers’ facilities.
Lim said the group plans to invest RM1.9 billion to build new factories, obtain new glove machines, buy land and drive organic growth for the next financial year in 2021.
“It is really a case of diversity of Top Glove in terms of product range coming in very well to help to record much better revenue,” he said.
He also said that the glove selling prices will remain high for the next one year due to the shortage of raw materials and with demand exceeding supply.
“Even to create nitrile and latex raw materials, the factory might take two to three years to build, which means the supply may not be able to increase so fast,” he explained.
— Bernama
