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KUALA LUMPUR (Feb 26): Top Glove Corp Bhd, which has spent RM1.4 billion on share buyback exercises, plans to launch new shares in Hong Kong to raise up to RM7.7 billion.
In a stock market filing, the world’s largest glove maker said the dual primary listing exercise on the main board of the Hong Kong Stock Exchange involves the issuance of up to 1.5 billion new shares, representing the 18, 65% of the total issued shares of the 8,020 million group. The issue price will be determined later.
The 1.5 billion new shares also include an additional 195 million shares that can be issued under the over-allotment option, if the shares are fully exercised, he said.
Of the total revenue of RM7.77 billion, the majority or RM4.61 billion will be used for the expansion of production capacity and the development of a data-driven manufacturing system.
RM770 million will be allocated to each for research and development, software system upgrade and possible mergers and acquisitions.
Another RM390 million will be used for environmental, social and corporate governance initiatives and initiatives, while the remaining RM390 million will be used for working capital and general corporate purposes.
In a separate statement, in relation to listing on the HKEX, Top Glove said that it will maintain its existing parent listing on the Bursa Malaysia main market and its existing secondary listing on the main board of Singapore Exchange Securities Trading Ltd (SGX-ST). .
Subject to the termination of the proposed dual primary listing, Top Glove’s shares will be listed and listed on Bursa, SGX-ST and HKEX and all such shares will be fungible / transferable between these three exchanges.
“The proposed dual primary listing is conditional on, among other things, approvals by Top Glove shareholders and the Malaysian Securities Commission, Bursa Securities and the HKEX Listing Committee,” it said.
Its chief executive, Tan Sri, Dr. Lim Wee Chai, said that a double primary listing in Hong Kong would create an expanded global platform that could enable the group to raise capital for business growth, geographic expansion, and strategic investments and acquisitions.
China International Capital Corp is the sole sponsor of the proposed dual primary listing in Hong Kong, while Hong Leong Investment Bank Bhd is the lead advisor for the proposed dual primary listing in Malaysia.
In a separate filing with Bursa Malaysia, Top Glove said it intends to appoint three additional independent non-executive directors, along with the dual primary listing proposal.
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 receipt of all necessary approvals for the proposed dual primary listing. .
Tan was the CEO of Standard Chartered Bank (Hong Kong) Ltd and was also its CEO from July 2014 to February 2017. Apart from this, she was also the President of the Hong Kong Banking Association, an ex-officio member of the Board. Hong Kong Business Development Board and member of the Currency Board Subcommittee of the Hong Kong Monetary Authority Exchange Fund Advisory Committee in 2016.
Huang became a Hong Kong Qualified Lawyer in March 1985 and has more than 30 years of post-qualification experience. Currently, he is a non-executive director of the Securities and Futures Commission (SFC). He also chairs the Financial Education and Investment Council, a subsidiary of the SFC.
“To the best of the company’s knowledge, the proposed independent non-executive directors did not hold management positions in public or listed companies in Malaysia.”
Top Glove added that they are not related to any director and / or majority shareholder of Top Glove, have no conflict of interest with Top Glove, and have no interest in shares of Top Glove or its subsidiaries.
Shares of Top Glove closed down six sen or 1.13% at 5.24 yuan, valued at 42.98 billion ringgit. 41.76 million shares were traded.
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