Hot Stock: Enviro-Hub gains 26.7% after associate gets nod to market medical-grade gloves in US

SHARES of Enviro-Hub Holdings rose as much as 26.7 per cent on Tuesday morning, after the company announced that its associate company Pastel Gloves has received 510(k) regulatory clearance from the US Food and Drug Administration (FDA) to market its nitrile medical-grade examination gloves in the country.

The investment holding company's shares jumped as much as 26.7 per cent or 2.3 Singapore cents to 10.9 cents, with about 32.6 million shares changing hands, as at 9.05am. No married deals took place in early trade, according to ShareInvestor data.

The counter later eased to trade at 9.5 cents at 10.02am, up 10.5 per cent or 0.9 cent, before increasing again. As at 1.57pm, shares of Enviro-Hub were the most actively traded by volume and the counter was trading at 10 cents, up 16.3 per cent or 1.4 cents.

Enviro-Hub had previously announced a proposed acquisition of the remaining 75 per cent of shares of Pastel Gloves, which will become its wholly-owned subsidiary.

With the FDA clearance, it will be able to export the medical-grade gloves for sale in the US, where they typically command an average selling price 10 per cent to 15 per cent higher than normal gloves due to the limited supply in the market.

The company estimates that only 20 per cent of the gloves in the market have obtained the 510(k) FDA certification and expects demand to remain high.