MANILA, Philippines – Mobile technology firm Xurpas Inc. started buying back P170 million worth of shares to improve the value of its stocks.
“The program is aimed to improve shareholder value and is deemed appropriate given the substantial undervaluation of the company’s shares,” Xurpas said in a disclosure to the Philippine Stock Exchange (PSE).
The buyback program commenced Monday and will end upon the full usage of the approved allotment.
Xurpas said the company would use its retained earnings to purchase the shares.
Shares of Xurpas closed at P9.78 per share on Nov. 11.
The firm has a total of 1.8 billion outstanding shares to date.
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According to Xurpas, the buyback program will be executed through the open market via the PSE’s trading facilities and will not involve active and widespread solicitation from stockholders.
Meanwhile, Concepcion-led food and beverage producer RFM Corp. last week purchased a total of 112,000 shares at an average price of P4.35 per share as part of its buyback program.
With the purchase, the total number of shares bought back by RFM has reached 53.91 million million, valued at P217.25 million.
The buy back is part of the company’s program to repurchase up to P300 million worth of shares.
RFM reported a total net income of P683 million in the first nine months of the year, mainly due to the improved sales of its ice cream, milk and pasta businesses.
