Top Glove Delays Hong Kong IPO After U.S. Ban on Its Products
(Bloomberg) -- The world’s largest rubber glove maker said the U.S. ban on its Malaysian-made gloves will delay its share sale plan in Hong Kong by a few months.
The U.S. move is only temporary and the Hong Kong listing is for the long term, Top Glove Corp. Chairman Lim Wee Chai said at a briefing on Wednesday. The company is working with its advisor to get the Hong Kong IPO approved by the regulator, said Lim Cheong Guan, its executive director.
Top Glove, which is seeking a listing in Hong Kong to bolster its profile with foreign investors, has been under pressure to improve its labor practices after the U.S. Customs and Border Protection late March ordered personnel at U.S. ports of entry to seize its gloves made in Malaysia.
The company said in April it has resolved all issues of forced labor. It said today it is working closely with the U.S. CBP to speedily resolve the withhold order on its products. There have been no issues raised by the U.S. CBP, said its managing director Lee Kim Meow.
The firm cut the size of its share sale in Hong Kong by nearly half of its earlier target in April to minimize dilution to existing shareholders. The fundraising target was reduced to 4.22 billion ringgit ($1 billion) from 7.77 billion ringgit previously.
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