The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Shares of the world’s largest rubber glove maker rose to a two-month high after the company cut its share sale in Hong Kong by nearly half of its earlier target, a move analysts said will minimise earnings dilution.
Top Glove Corp climbed as much as 2.5% in Kuala Lumpur, the highest since February 23. The company, whose shares also trade in Singapore, will issue up to 793.5 million shares, down from 1.49 billion announced in February, it said in a filing.
The fundraising target stands reduced to 4.22 billion ringgit ($1 billion) from 7.77 billion ringgit previously, according to the filing.
“We believe this move will be taken positively by investors,†Megat Fais, an analyst at Citigroup Inc, said in a report.
“Whilst the HK listing was made known a while ago, the quantum of the fundraising
surprised negatively especially considering the supercycle that the gloves sector is currently
undergoing.â€