RIVERSTONE HOLDINGS LIMITED
AP4.SI
UG HEALTHCARE CORPORATION LTD
41A.SI
Singapore Glove Sector - Top Glove’s SGX listing could bring excitement to Singapore
World’s largest glovemaker to list on SGX
- Top Glove, the world's largest glovemaker by production volume and second by market cap, is planning a secondary listing in Singapore to boost trading liquidity. It intends to explore with its substantial shareholder the sale of about SGD20m worth of shares on the SGX.
- No new shares will be issued.
- The exercise is expected to complete by 3Q16.
Neutral impact on Top Glove
- Consistent with the view of our Malaysia glove analyst, we think this move will hardly help to boost liquidity for Top Glove as there is already ample liquidity in Malaysia.
- IHH is a good case in point, its trading volume has remained low in Singapore, since its dual listing in 2012.
- The beneficiaries will be the investment bankers and perhaps the substantial shareholder that will be selling its stake.
Positive for SGX-listed glovemakers; Maintain Positive
- This could pan out well for the Singapore-listed glovemakers, as they are trading at a notable discount of around 25% in terms of forward P/E vs the Malaysia-listed ones, due to lack of understanding, having only a small cluster of glove stocks listed here and less news flow.
- Malaysia has 7 listed glove stocks vs 2 in Singapore. With Top Glove's secondary listing, we could see more news flow and perhaps more glovemakers listing on the SGX.
- It makes sense since the glovemakers export globally and Singapore fits in as a widely recognised financial hub and politically stable nation.
- We maintain our BUY calls on Riverstone and UG Healthcare with TPs of SGD1.18 and SGD0.52.
John Cheong CFA
Maybank Kim Eng
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http://www.maybank-ke.com.sg/
2016-03-15
Maybank Kim Eng
SGX Stock
Analyst Report
1.18
Same
1.18
0.52
Same
0.52
