December 11, 2024 | 12:00am
MANILA, Philippines — SM Prime Holdings Inc., the integrated property developer of the Sy family, is preparing to buy back shares worth as much as P10 billion.
SM Prime said its board of directors approved a share buyback program ranging from P5 billion to P10 billion.
The company’s management has been delegated to set the final terms and implementation of the program.
SM Prime has been trading at an average price of P26.67 per share from a 52-week high of P35.40. Its 52-week low is P25.70 per share.
Buying back of shares is usually undertaken by companies to boost its share price.
“Share buybacks are usually a way for companies to signal to the market that they think their stock has become too undervalued,” AP Securities research head Alfred Benjamin Garcia said.
“It’s typically well received by the market because aside from improving the per share metrics like earnings and dividends per share, it also improves shareholder sentiment and underpins the share price,” he said.
SM Prime last month announced plans to consolidate all residential projects under the SM Residences brand beginning next year as part of a strategic reformat and expansion of its portfolio to optimize revenue mix across key business units.
Over 1,000 hectares of land has been earmarked by SM Prime for its SM Residences projects.
The projects are slated for development over the next five years, around 85 percent of which are for horizontal development.
By strategically aligning and expanding its portfolio, SM Prime hopes to sustain its growth momentum, diversify revenue streams and strengthen its leadership position in the real estate sector.
The company is committed to its role as a catalyst for economic growth by delivering innovative and sustainable lifestyle cities.
SM Prime is looking to spend P100 billion to P110 billion for its capital expenditures next year.
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