Top Glove spends lower amount on 13th day of share buyback

Top Glove spends lower amount on 13th day of share buyback
-A +A

KUALA LUMPUR (Nov 26): Top Glove Corp Bhd bought back its own shares for the 13th consecutive trading day today, but the amount spent was much lower than the previous days. 

The group spent RM9.98 million today to repurchase 1.44 million shares, compared with between RM42 million and RM70 million in the previous days.

In a bourse filing, the glove maker said the price paid for the shares bought today ranged from RM6.90 to RM6.92 apiece.

The latest purchase raised the group’s cumulative net outstanding treasury shares to 157.03 million shares, which is equivalent to a 1.92% stake.

Today’s purchase also raised the amount the group has spent on share buybacks this month to RM781.66 million, after spending RM355 million in September.

This means Top Glove has spent RM1.14 billion on share buybacks since September. This equals to about 60.8% of the group’s net profit of RM1.87 billion for its financial year ended Aug 31, 2020.

It also represents 93.93% of its cash and cash balances as at the end of FY20, which amounted to RM1.21 billion. Top Glove also has RM1.67 billion worth of investment securities.

Meanwhile, the Employees Provident Fund continued to trade in Top Glove shares today, disposing of 4.43 million shares.

Following the disposal, the EPF has 520.72 million shares or a 6.48% stake in the glove manufacturer.

Top Glove was the ninth-biggest gainer on the local bourse today, rising 40 sen or 6.02% to RM7.05 on profit taking, with some 63 million shares exchanging hands.

Year to date, Top Glove has risen by 355% from RM1.55 on Jan 2. 

At the current price, the group’s market capitalisation stands at RM56.69 billion.

S Kanagaraju