Xiaomi Group has signed an agreement with an independent broker to repurchase up to HK$4 billion of its Class B ordinary shares. The automatic buyback program, part of a previously announced HK$20 billion repurchase plan, begins June 19 and runs through the end of 2026. All repurchased shares will be canceled.
Xiaomi Group has signed an agreement with an independent broker to repurchase up to HK$4 billion of its Class B ordinary shares. The automatic buyback program, part of a previously announced HK$20 billion repurchase plan, begins June 19 and runs through the end of 2026. All repurchased shares will be canceled.
Xiaomi Group signed an agreement to repurchase as much as HK$4 billion of its Class B shares, the company said Thursday.
"The automatic repurchase plan showcases our confidence in the company's business prospects and is in the best interests of the company and its shareholders," Xiaomi said in a stock exchange filing.
The HK$4 billion buyback is part of a broader HK$20 billion repurchase plan disclosed May 26. The program will be executed by an independent broker under predetermined parameters on the Hong Kong Stock Exchange. All shares bought back will be canceled, reducing the total share count.
Share cancellation typically increases earnings per share by reducing outstanding shares. The buyback signals management's view that Xiaomi shares are undervalued relative to the company's growth prospects in smartphones and electric vehicles.
The buyback provides a floor for Xiaomi's stock and signals management's conviction in the company's valuation. Investors will monitor the pace of repurchases over the coming months as a measure of how aggressively management pursues the full HK$20 billion authorization.
This article is for informational purposes only and does not constitute investment advice.
