SYDNEY: Malaysia’s Top Glove has postponed its plan to boost $347 million by way of a Hong Kong listing as Russia’s invasion of Ukraine weighs on investor sentiment and heightens markets volatility, in keeping with an individual with direct information of the matter.
The firm, which benefited from demand for disposable gloves through the COVID-19 pandemic, has a main listing in Kuala Lumpur and a secondary listing in Singapore, and had deliberate the Hong Kong listing to broaden its investor base.
The source couldn’t be named as the knowledge has not but been made public.
Top Glove didn’t instantly reply to Reuters request for remark.
The rubber glove producer had initially aimed to boost $1 billion within the Hong Kong listing, which might have been a twin main, however has scaled down the scale of the deal over the previous 12 months.
Top Glove acquired shareholder approval in December to concern as much as 793.5 million new shares which on the present worth of 1.83 ringgit would have raised about $347 million.
Top Glove had deliberate to launch the deal in February however risky monetary markets on the time prompted the corporate to place the transaction on maintain, the source mentioned.
The invasion has elevated volatility over the previous two weeks. Russia calls its actions in Ukraine a “particular operation”.
Top Glove’s Kuala Lumpur-listed inventory has fallen 29.3% thus far in 2022.
The agency is because of publish its second-quarter earnings on Wednesday. – Reuters
