AIM-listed payment services group Boku (BOKU) has announced it will buy back up to 4 million shares or 5% of its issued capital as it believes the current market prices undervalues the business.
The firm says the buyback ‘represents a good investment opportunity and effective use of our growing own-cash balances, as well as a reaffirming of our belief in the company’s long term growth plan’.
| Price: 219p +4.2% | P/E: 93x |
| Market Cap: £648m | Yield: n/a |
Boku already owns 6.5 million shares or 2.1% of the company, so either we’re being dim or the maths doesn’t add up.
There are roughly 297 million shares in issue, so 5% of the capital is 14.85 million shares not 4 million.
Netting off the 6.5 million the firm already owns would mean buying back a further 8.35 million shares, so maybe 4 million is just the first tranche.
Either way, investors have lapped up the news sending the shares 4% higher so who are we to quibble.
The aim is to complete the programme by 30 April, which means hoovering up around 100,000 shares each trading day starting today.
For what it’s worth, the average volume over the last three months is around 500,000 shares per day.
Read the press release here: https://investors.boku.com/
Disclaimer: This content is for information only and is not investment advice. Always do your own research before investing. Click here to see full disclaimer.
