KUALA LUMPUR: Shares in Mah Sing Group Bhd, which has been on an uptrend, rose over 13% in early trade to its highest in over two years.
The developer added 13.23%, or 12.5 sen to RM1.07, highest since September 2018. It is one of the most heavily traded counters on Bursa Malaysia with over 107 million shares traded.
Mah Sing will be spending up to RM150mil in capital expenditure for the first phase of its proposed rubber glove venture, which will be funded via internal funds, bank borrowings and sukuk issuance.
It entails the purchase of 12 new glove production lines and other plant and machinery such as boilers, chillers, compressors and wastewater treatment plant, as well as the refurbishment work of a warehouse in Klang.
The group plans to start its first manufacturing line as early as mid-2021 and is gunning to be one of the country’s top five biggest rubber glove producers.
Mah Sing says the diversification into glove manufacturing is to mitigate the risks the company faces from the Covid-19 pandemic.