SBP Group announces HK$2 billion buyback as stock faces volatility

SBP Group announced a HK$2 billion share buyback over 12 months, saying its stock is "grossly underestimated" after recent volatility.

The board has decided to repurchase ordinary shares from the open market "in order to boost investors' confidence and enhance shareholders' return," the company said in a filing.

The buyback, with an aggregate consideration not exceeding HK$2 billion, will be executed over the next 12 months. The company did not disclose the buyback as a percentage of outstanding shares or market capitalization. The Hong Kong-listed company (01177.HK) cited recent volatility in its share price as a key factor behind the decision. Shares of SBP traded 1.5% higher on the announcement, with short selling volume of HK$132.9 million representing 24.2% of total turnover as of June 12, indicating elevated bearish bets before the news.

The repurchase plan shows management believes the company is undervalued, a move that could help stabilize the stock and reduce selling pressure. Buyback programs in Hong Kong have gained traction as companies seek to support share prices during periods of market weakness. The pace of execution over the coming quarters will serve as a gauge of the board's commitment to returning capital to shareholders.

This article is for informational purposes only and does not constitute investment advice.