On October 29th, the capital state learned thatTop glove groupSubmit a listing application to the Hong Kong Stock Exchange for listing on the Hong Kong main board, with China International Capital Corporation as its exclusive sponsor.
According to the prospectus, according to Frost Sullivan, the company is the world's largest glove manufacturer, with a global market share of 14.1%, 10.0% and 11.7% in 2020, respectively, in terms of sales revenue, sales and production capacity.
In fiscal year 2021, the company sold its products to about 1400 customers in 125 countries, covering North America, Latin America, Europe, Africa, Asia, the Middle East and Oceania.
Among them, gloves are the company's main product, accounting for 99.6% of the company's revenue in fiscal year 2021. The company's gloves are used for medical purposes (including clinical examinations and surgeries) and for non-medical purposes (including household and food, automotive, manufacturing and retail industries). The company manufactures and sells all kinds of gloves, including nitrile gloves, natural rubber latex gloves, CPE/TPE gloves, vinyl gloves and surgical gloves.
On the financial side, the company's revenue increased by 50.74% from 4.801 billion ringgit in fiscal year 2019 to 7.237 billion ringgit in fiscal year 2020, and further increased by 126.07% to 16.361 billion ringgit in fiscal year 2021, with an annual compound growth rate of 84.6%. Gross profit margin increased from 18.4% in fiscal year 2019 to 39.4% in fiscal year 2020, and then to 67.9% in fiscal year 2021.
The company admitted that the steady increase in performance was due to increased demand for glove products during the epidemic, and that if the epidemic ended, the company's revenue and profit margins might not be sustainable.
In addition, the company relies on the number of foreign workers and related costs, accounting for 66%, 56% and 47% of the group's total employees on August 31, 2019, 2020 and 2021, respectively.
It is understood that Top Glove has made a primary listing on the Malaysian Stock Exchange and a secondary listing on the Singapore Stock Exchange, and this time the company is seeking to be listed on the main board of the Hong Kong Stock Exchange as a primary listing place. Top Glove plans to raise $1 billion in a Hong Kong listing, according to people familiar with the matter.
The company believes that the listing of shares on the Hong Kong Stock Exchange will help Top Glove create another platform for its shares to be traded through another rare's exchange, expand the number of investors in the company, enhance share liquidity, and provide financing flexibility for future fund-raising.
The proceeds from the listing are planned to be used for capacity expansion and the development of digital manufacturing systems; research and development; upgrading of various software systems and acquisition of information technology; investment in environmental, social and corporate governance practices and initiatives; and potential mergers and acquisitions and other investment opportunities.