KUALA LUMPUR (March 1): Top Glove Corp Bhd's share price had dropped 7.6% or 40 sen to RM4.84 at the time of writing today, wiping off RM3.28 billion of its market capitalisation, following news that the glove maker wants to raise RM7.7 billion via a primary dual listing in Hong Kong.
Analysts foresee Top Glove’s primary dual listing on the Hong Kong Exchange (HKEX) to dilute its financial year ending Aug 31, 2021 (FY21) to FY23 earnings per share (EPS).
CGS-CIMB Research analyst Walter Aw said he is negative on the exercise as it is EPS dilutive.
Assuming the overallotment option is exercised, he estimated this exercise will reduce the group’s FY21 to FY23 EPS by 11.2% to 15.1%.