Glove maker Careplus rises as much as 14.22% on planned transfer to Main Market

KUALA LUMPUR (April 26): Shares in rubber glove manufacturer Careplus Group Bhd rose as much as 30 sen or 13.33% to RM2.55 this morning after the group announced a proposed transfer of its listing to the Main Market.

In a bourse filing last Friday, the group announced that the company had proposed to undertake the proposed transfer of the listing of, and quotation for the entire issued share capital, of Careplus from the ACE Market to the Main Market of Bursa Securities.

The issued share capital of Careplus is RM136.11 million, comprising 550,079,799 ordinary shares.

Careplus and its subsidiaries are deemed to have met the requirements for the transfer to the Main Market, namely an aggregate net profit of at least RM20 million for three to five full financial years, with the most recent financial year posting at least RM6 million, a sufficient level of working capital for at least 12 months with positive cash flow records and no accumulated losses based on the latest financial statements.

The company is also in a healthy financial position, with current assets and current liabilities at RM202.28 million and RM158.19 million respectively, representing a current ratio of 1.28 times, as well as cash and cash equivalents of RM64.09 million.

The move, the board said, will enhance the company’s credibility and reputation, and accord the company greater recognition and a following among institutional investors.

At 10.44am today, Careplus shares had risen to RM2.57, up by 32 sen or 14.22%, which valued the group at RM1.414 billion.

Source: TheEdgeMarkets