KUALA LUMPUR (Feb 22): Shares of Top Glove Corp Bhd plunged more than 5% today as it continued heading south in the afternoon session to close at its intra-day low of RM4.83 — the lowest closing since Jan 31.

The selling pressure came the day after the glove maker had priced US$200 million (about RM814 million) in principal amount of exchangeable bonds yesterday.

The stock fell the most significantly during the morning trade session and then continued on a steady decline for the rest of the day to close at RM4.83, down 27 sen or 5.29%, for a market capitalisation of RM12.348 billion. This is the lowest point for the stock since Jan 31.

Yesterday, Top Glove said proceeds from the five-year bonds with a coupon rate of 2% a year will refinance the existing debt of the group and payment of fees and expenses relating to the bonds issue.

The bonds may be exchanged into new Top Glove shares at the option of the bondholders during the exchange period. The initial exchange ratio shall be 656.0767 Top Glove shares per US$1,000 in principal amount of the bonds. This translates into an exchange price of about RM6.20 per share should the bondholders opt for converting the debt paper into equity.

In its first financial quarter ended Nov 30, 2018 (1QFY19) Top Glove recorded a net profit of RM110.06 million, up 4.4% from RM105.45 million in the previous corresponding quarter.

Top Glove has yet to announce its second financial quarter results which is due by April.