(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
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ADDING BOUNCE. Shares in beleaguered Top Glove rallied on Friday after the world’s biggest maker of protective handwear almost halved the size of its Hong Kong float. The Malaysian group, already listed in Kuala Lumpur and Singapore, plans to raise up to $890 million, versus initial hopes of $1.9 billion.
Top Glove said it cut its offering to limit dilution, but there are other good reasons to do so. A fundraising that would water down existing investors, a month after announcing a pacifying special dividend totalling half the revised deal size – all the while holding net cash – was always going to need very understanding investors and buoyant markets. And that was before the hit from the United States’ decision in March to ban all Top Glove imports over forced labour concerns. Shares may be up 150% over the past year, but they have fallen 40% from their October pandemic-related peak. A smaller listing looks a better fit. (By Jennifer Hughes)
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