By Sherry Qin
Swire Pacific’s shares rose sharply after the company announced a large share buyback program that lifted investor sentiment.
Shares of the Hong Kong-based conglomerate climbed 14.5% to 58.55 Hong Kong dollars early Wednesday, on track for its biggest daily rise since early 2021.
Swire Pacific said Tuesday after the market closed that it would buy back shares worth up to 6 billion Hong Kong dollars (US$767.3 million), according to an exchange filing. The company plans to repurchase shares from Dec. 6 to the end of its annual general meeting in May 2025.
“The board believes that the current financial resources of the company would enable it to implement the program while continuing to maintain a solid financial position,” it said.
The program will be funded from existing capital and cash reserves, the company said.
Citi analysts George Choi and Ryan Cheung called the move a “positive surprise” and should be “well-received by investors” despite the currently volatile stock market, they say in a research note. They reckon the share buyback program should narrow Swire Pacific stock’s net asset discount from its current level.
The news came…
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