Shares of Top Glove Corp Bhdrose as much as 3% in early trade after it announced its bonus issue and US$300mil bond sale.
The glovemaker, the second top gainer, rose 30 sen, ot 3% to RM10.30 in early trade. The counter has risen some 112.51% so far this year.
Top Glove is proposing a 1-for-1 bonus issue involving up to 1.28 billion new shares to reward shareholders.
The group also plans to issue up to US$300mil worth of bonds, which will raise funds mainly to repay Top Glove’s bank borrowings.
The company undertakes the proposed bonus issue to reward the company’s shareholders in the form of bonus shares which will enable the shareholders to have greater participation in the equity of Top Glove in terms of number of shares while retaining their percentage of equity interest held.
In addition, the proposed bonus issue will increase the number of Top Glove shares in issue, which may potentially improve the liquidity and marketability of Top Glove shares.