Press Releases in Hong Kong

Top Glove delays HK IPO after US ban on its products

Latex gloves attached to an air compressor are inflated in the air-leak test room at a Top Glove Corp factory in Setia Alam, Selangor, Malaysia on Feb 18, 2020. (SAMSUL SAID / BLOOMBERG)

The world’s largest rubber glove maker said the US ban on its Malaysian-made gloves will delay its share sale plan in Hong Kong by a few months.

Top Glove said in April it has resolved all issues of forced labor. It said today it is working closely with the US Customs and Border Protection to speedily resolve the withhold order on its products

The US move is only temporary and the Hong Kong listing is for the long term, Top Glove Corp Chairman Lim Wee Chai said at a briefing on Wednesday. The company is working with its advisor to get the Hong Kong IPO approved by the regulator, said Lim Cheong Guan, its executive director.

ALSO READ: Top Glove's 'US$1b HK listing delayed amid US ban imbroglio’

Top Glove, which is seeking a listing in Hong Kong to bolster its profile with foreign investors, has been under pressure to improve its labor practices after the US Customs and Border Protection (CBP) late March ordered personnel at US ports of entry to seize its gloves made in the Southeast Asian nation.

The company said in April it has resolved all issues of forced labor. It said today it is working closely with the US CBP to speedily resolve the withhold order on its products. There have been no issues raised by the US CBP, said its managing director Lee Kim Meow.

READ MORE: US Customs determines forced labour at Malaysia's Top Glove

The firm cut the size of its share sale in Hong Kong by nearly half of its earlier target in April to minimize dilution to existing shareholders. The fundraising target was reduced to 4.22 billion ringgit (US$1 billion) from 7.77 billion ringgit previously.