Ben Otto

Top Glove Corp. Bhd. plans to raise up to $1.9 billion in an offering of new shares in Hong Kong to help it expand amid rising global demand for protective wear.

The world's largest glove maker said Friday that it would seek to issue up to 1.495 billion new shares in the red-hot Hong Kong market, raising up to 14.95 billion Hong Kong dollars (US$1.93 billion). The Malaysian company didn't specify pricing for shares or issue a timeline, but said it submitted listing documents to the Hong Kong Stock Exchange on Friday.

Top Glove, whose fortunes have soared amid a demand for protective wear during the Covid-19 pandemic, said it would seek a dual primary listing on the Hong Kong bourse's main board. The company is already listed on exchanges in Malaysia and Singapore.

It plans to use proceeds raised primarily to expand production capacity and boost its data-driven manufacturing capabilities. The company plans capital expenditure of 10.0 billion ringgit (US$2.48 billion) in the next five years to boost glove production capacity by 100 billion pieces.

Top Glove supplies products including disposable medical gloves to more than 190 countries. It said it expects global glove demand to grow from 10% annually prepandemic to 15% annually after the crisis, adding that "while demand will stabilize postpandemic, it will not revert to prepandemic levels owing to increased hygiene awareness."

The stock price of the company's Malaysian shares nearly quadrupled in 2020 on rising global demand for protective wear as the coronavirus crisis spread around the world. Despite losing some ground in the stock market in 2021, its market capitalization stands at nearly $11 billion, making it one of the largest companies among the components of the Kuala Lumpur Composite Index.

Hong Leong Investment Bank is advising on the offering of new shares.

Write to Ben Otto at ben.otto@wsj.com

(END) Dow Jones Newswires

02-26-21 0541ET