SINGAPORE (July 21): Top Glove has been topping the news since it announced an undertaking of a bonus issue. Under this, the world’s top glove manufacturer will exercise some 5.48 billion shares on the basis of two bonus shares for each existing one.

This proposed issuance serves to reward shareholders and enhance their participation in the company’s equity through the number of shares held, Top Glove noted in its July 20 regulatory filing.

Executive chairman Lim Wee Chai says the move is in line with the company’s priority to add and create value for its shareholders.

He adds, “this will also enable us to increase the number of shares in issue, which is expected to create more liquidity and marketability for Top Glove’s shares”.

The announcement comes days after the US Customs and Border Protection (CBP) placed a detention order on the disposable gloves manufactured by two of the company’s subsidiaries – Top Glove Sdn Bhd and TG Medical Sdn Bhd.

UOB Kay Hian analyst Philip Wong says the issue had arisen from labour-related issues such as passport retention by employers and employees having to bear recruitment fees. 

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