A worker at production line on rubber-gloves at the Top Glove Corp. rubber-glove factory in Klang,
KUALA LUMPUR: Top Glove Corp Bhd
is planning a secondary listing in Singapore to enhance its investor reach, diversify its investor base and create a stronger awareness for its brand globally.
In a filing with Bursa Malaysia, the world’s largest rubber glove manufacturer said the local bourse would remain the primary stock exchange on which its shares were listed.
The proposed secondary listing on the Singapore Exchange Securities Trading Ltd (SGX-ST) Main Board will not involve the issuance of new Top Glove shares.
“To create liquidity and trading activity on Main Board of the SGX, the company intends to explore with its substantial shareholder(s) the possibility of selling a portion of their shareholdings in Top Glove of about SG$20.0mil (equivalent to about RM59.4mil) in value in the open market on the Main Board of the SGX-ST,” it said.
Top Glove expects to boost its shares’ trading liquidity as Singapore is widely recognised as a global financial hub with foreign companies representing more than 30% of the companies listed there, supported by high level of participation from international investors.
This will also enable it to tap on a new platform for potential future fund raising as well as merger and acquisition exercises.
Top Glove said its profile’s visibility among international investors, analysts and media would be enhanced too, thereby potentially resulting in a stronger brand awareness for Top Glove as well as wider research coverage globally.
It noted that Singapore is an internationally recognised fund management centre, and is also Asia’s largest foreign exchange trading centre and active commodities trading centre.
Top Glove also proposed amendments to its articles of association to facilitate the proposed secondary listing.
“The articles of association of the company will have to be amended to allow the Top Glove shares to be deposited with CDP (Central Depository (Pte) Ltd),” it explained.
Following the proposed secondary listing, a shareholder holding existing Top Glove shares listed and quoted on Bursa Securities may transfer the shares to the SGX-ST and vice versa for trading on the respective stock exchanges, subject to the fulfilment of transfer conditions and criteria.
Top Glove shares shed 12 sen to close at RM5.32 on Monday, with 2.566 million shares changing hands.
.
Subscribe now and receive FREE sooka plan for 1 month.
T&C applies.
