Online gaming firm DigiPlus Interactive Corp. said Monday it approved a share buyback program of up to P6 billion after its share price declined by 55.8 percent over the past two weeks due to fears of an online gaming crackdown.
The stock price of DigiPlus fell to P29.50 Friday from a 52-week high of P65.30.
The company said the share buyback program aims to boost shareholder value and reflects confidence in its long-term outlook.
“The share repurchase program demonstrates our firm confidence in DigiPlus’ long-term growth and solid fundamentals,” DigiPlus chairman Eusebio Tanco said.
“By strategically deploying our capital through this buyback, we are sending a clear signal that DigiPlus is committed to delivering sustainable returns for shareholders while remaining well-positioned to pursue expansion and innovation,” said Tanco.
The repurchase program will run for 12 months and may be renewed with further board approval. It will be funded entirely from DigiPlus’ internal cash flow.