NEWS

Xiaomi repurchases shares worth 4.3 billion

Acciones Xiaomi

 

As disclosed by the manufacturer’s board, Xiaomi on Tuesday passed a resolution on the repurchase of shares, paving the way for the company to repurchase up to $ 4.3 billion in company shares.

This announced buyback adjustment is highly important as Xiaomi Corp. seeks to offer greater confidence with investors.

  • The company’s share prices have lost nearly a third of its value since its debut on the Hong Kong stock exchange in July 2018, affected by the slowdown in the phone market and low margins in its hardware business. , the company’s largest source of income.
  • Xiaomi share prices increased by 8.7% during the Wednesday morning trading session.

Xiaomi’s board of directors has approved a resolution allowing the company to buy back up to 10% of its issued shares, according to a statement filed on the Hong Kong stock exchange.

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  • Xiaomi has issued 24.1 billion shares, according to the filing, which means the company could buy up to 2.4 billion shares. The value of that 10% of the shares as of Wednesday was HK $ 33.1 billion (about $ 4.3 billion).
  • The resolution allows the company to buy back shares but has not yet announced a plan. A Xiaomi representative declined to comment on this execution plan.

This share buyback plan is the most aggressive to date developed by Xiaomi.

  • The company has executed nearly 20 buybacks since the September announcement. In April, it spent nearly HK $ 500 million on two buybacks on two consecutive days.
  • Shares are up 65% since the announcement. However, they remain at two-thirds of the value of the initial public offering price.
  • The company said in March that its fourth-quarter revenue increased 27.1% yoy to RMB 56.5 billion (about $ 8 billion), with cash reserves of RMB 66 billion at the end of 2019.
  • Xiaomi has achieved a very good position in innovative companies around the world.

This information has been taken from the web Technode, specialists in offering stock market information.

About the author

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Luiz Correia Dias

Hello, Luiz Correia Dias and I am the founder of DoctorXiaomi.com. According to my background, I am an Environmental Engineer, but my vision is something different from my background. I like blogging in a technological niche. I want to spread all the information about Xiaomi to the hardcore lover of Xiaomi. So, decide to start the blog.

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