Top Glove has proposed a bonus issue of up to 406 million1 warrants on the basis of 1 warrant for every 20 existing Top Glove shares to reward its shareholders by giving them the opportunity to increase their equity participation through the exercise of the warrants at a predetermined price, reaffirming that the group will continue to adhere to global ESG2 standards.
The proposed warrants are exercisable anytime within 5 years from the date of issuance and the exercise price will be made known at a later date, announced the group in its press statement on Thursday.
The issuance of the warrants is subject to shareholders’ approval at the upcoming Annual General Meeting, or AGM, in January (2025).
The exercise will strengthen the group’s capital base, enabling it to raise additional funds without incurring additional interest expense, as compared to bank borrowings.
The glove manufacturer recorded a 75.5% revenue surge year-on-year in the last quarter of financial year 2023/24, and its revenue for the full-year grew by 11.5%
The quarterly revenue amounted to RM835 million, the strongest sales volume growth for Top glove since the peak of the pandemic in 2021.
The 2025 and 2026 net profit margins of Top Glove are projected to grow at 39% and 42%, respectively, as a result of higher sales volume and factory utilisation rate, according to market analysts.
On the ESG front, Top Glove, in July 2024, successfully delivered its first shipment of sustainable natural rubber gloves to Europe fully traceable to their plantation origins, demonstrating the group’s commitment to fully complied with the EU Deforestation Regulation, or EUDR, attained ahead of the 30 December 2024 deadline.
In addition, the group received an ‘A’ in the MSCI ESG Rating in the same month of 2024, which is an improvement over its ‘BBB’ rating in 2023 and the highest achievement since Top Glove’s participation in 2019.
The MSCI ESG Rating measures a company’s management of financially relevant ESG risk and opportunity, with assessment carried
out based on publicly available information.
Last month, the group also released the results of a Life Cycle Assessment (LCA) report which evaluates the environmental impact of its product throughout its entire life cycle, from raw material extraction to disposal.
The LCA which was carried out on Top Glove’s conventional nitrile powder free gloves and biodegradable nitrile powder free gloves, revealed that carbon emissions for its biodegradable nitrile powder free gloves were 8.3% lower than that of its conventional nitrile gloves.
In September 2024, Top Glove ranked 7th amongst the 20 winners of the National Corporate Governance & Sustainability Awards.
