Top Glove plans for Hong Kong IPO as demand spikes during the pandemic
CGTN
A worker inspects disposable gloves at the Top Glove factory production line in Shah Alam on the outskirts of Kuala Lumpur, August 26, 2020. /VCG

A worker inspects disposable gloves at the Top Glove factory production line in Shah Alam on the outskirts of Kuala Lumpur, August 26, 2020. /VCG

The world's largest gloves manufacturer Top Glove Corporation Bhd said it planned to list in Hong Kong within six to nine months after "supernormal" demand for disposable gloves during the COVID-19 pandemic saw its quarterly profit skyrocket to a company record.

Executive chairman Lim Wee Chai said the world's top disposable medical glove maker, which is already listed in Malaysia and Singapore, was in talks with bankers about the Hong Kong deal.

"It's only a plan and we are talking to the bankers to see which is the most suitable method to go for listing in Hong Kong," he added in a virtual briefing. "As a whole we are a global company, we must expand our company to a bigger market so that (we are) visible in the world market."

The Malaysian company outlined the plans to list in the Asian financial center as it posted its highest-ever quarterly net profit of 1.29 billion ringgit (311.37 million U.S. dollars), for its fourth quarter which ended on August 31.

That was 17 times higher than the 74.2 million ringgit it made a year ago, and easily surpassed the 349.2 million ringgit average analyst estimate from a poll by Refinitiv.

Managing Director Lee Kim Meow said the financial results "hit an unprecedented high." Protective gear will still be required even when a vaccine becomes available, Top Glove added.

Glove demand remains at a "supernormal level," the company said, estimating demand would grow 25 percent next year from the 20 percent this year, and 15 percent post-pandemic.

Top Glove currently has the capacity to produce 85.5 billion glove pieces - one of a pair - a year and has earmarked eight billion ringgit of capital expenditure over the next six years to add an additional 100 billion pieces of capacity.

Its new Vietnam factory is scheduled to be commissioned next month.

(With input from Reuters)