Welcome to the Reuters.com BETA. Read our Editor's note on how we're helping professionals make smart decisions.
Skip to main content


Capital Calls: Top Glove reduces listing stretch

2 minute read

A worker inspects newly-made gloves at Top Glove factory in Shah Alam, Malaysia August 26, 2020. REUTERS/Lim Huey Teng

HONG KONG, April 23 (Reuters Breakingviews) - Concise insights on global finance.


ADDING BOUNCE. Shares in beleaguered Top Glove (TPGC.KL), rallied on Friday after the world’s biggest maker of protective handwear almost halved the size of its Hong Kong float. The Malaysian group, already listed in Kuala Lumpur and Singapore, plans to raise up to $890 million, versus initial hopes of $1.9 billion.

Top Glove said it cut its offering to limit dilution, but there are other good reasons to do so. A fundraising that would water down existing investors, a month after announcing a pacifying special dividend totalling half the revised deal size – all the while holding net cash – was always going to need very understanding investors and buoyant markets. And that was before the hit from the United States’ decision in March to ban all Top Glove imports over forced labour concerns. Shares may be up 150% over the past year, but they have fallen 40% from their October pandemic-related peak. A smaller listing looks a better fit. (By Jennifer Hughes)

On Twitter http://twitter.com/breakingviews

Earlier in Capital Calls:

Chubb and Hartford read more

Private pools boom read more

The less flashy end of green investing read more

American Airlines lightens the losses read more

Europe IPOs get a qualified tech boost read more

SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: <a href="http://bit.ly/BVsubscribe" target="_blank">http://bit.ly/BVsubscribe</a> | Editing by

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

More from Reuters