KUALA LUMPUR, Aug 22 — Supermax Corporation Bhd is undertaking an establishment of a long-term incentive plan, comprising the employee share option scheme (ESOS) and share grant plan (SGP) of up to 15 per cent of its issued share capital for eligible employees and directors as well as subsidiary companies.

As of August 5, 2022, Supermax issued share capital stood at RM340.07 million, comprising 2.66 billion shares.

In a filing with Bursa Malaysia today, the rubber glove manufacturer said proceeds arising from the exercise of the ESOS options would be utilised for its working capital requirements.

It said the working capital would be used to fund its day-to-day operations to support existing business operations which shall include, but are not limited to, the payment of trade and other payables, staff costs such as salaries, statutory contributions and employee benefits as well as other operating expenses.

"The company expects to utilise the proceeds for the said working capital requirements within a period of 12 months as and when the proceeds are received throughout the tenure of the long-term incentive plan,” it said.

Moving forward, Supermax said it expected the rubber glove business to continue normalising as average selling prices and demand continue to decline from the highs seen at the peak of the Covid-19 pandemic.

"Nevertheless, the structural shift triggered by the pandemic will see demand remain at a higher level compared to the pre-pandemic period and resume a longer-term upward trend once a period of consolidation is over,” it added. — Bernama