Excerpts from analyst's report
Maybank Kim Eng analyst: John Cheong, CFA
Top Glove’s SGX listing could bring excitement to Singapore
World’s largest glovemaker to list on SGX ![]() It intends to explore with its substantial shareholder the sale of about SGD20m worth of shares on the SGX. No new shares will be issued. The exercise is expected to complete by 3Q16. |
Neutral impact on Top Glove
Consistent with the view of our Malaysia glove analyst, we think this move will hardly help to boost liquidity for Top Glove as there is already ample liquidity in Malaysia. IHH is a good case in point, its trading volume has remained low in Singapore, since its dual listing in 2012.
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The beneficiaries will be the investment bankers and perhaps the substantial shareholder that will be selling its stake.
Positive for SGX-listed glovemakers; Maintain Positive
This could pan out well for the Singapore-listed glovemakers, as they are trading at a notable discount of around 25% in terms of forward P/E vs the Malaysia-listed ones, due to lack of understanding, having only a small cluster of glove stocks listed here and less news flow. Malaysia has 7 listed glove stocks vs 2 in Singapore.
Full report here.