Top Glove to sell 793.5m new shares

THE world's largest rubber glove manufacturer announced on Thursday that it will sell 793.5 million new shares, an issuance expected to raise HK$7.94 billion (S$1.36 billion).

Malaysia-headquartered Top Glove said net proceeds, after deducting underwriting commissions, the discretionary incentive fee and revised estimated expenses in relation to the global offering payable by the company, is estimated at HK$7.84 billion.

Sixty per cent of the proceeds, or about HKS$4.7 billion, will be used to expand production capacity and to develop a data-driven manufacturing system, Top Glove said.

Ten per cent will be allocated towards research and development, and another 10 per cent, for the upgrading of software systems and to acquire IT such as artificial intelligence and big data.

The remainder will go towards environmental, social and corporate governance initiatives, potential investment opportunities and working capital and general corporate uses.

Top Glove shares closed at S$1.80 on Thursday, 2.3 per cent or 4 Singapore cents higher.