Boku launches buyback of up to four million shares
Boku, Inc (DI) Reg S Cat 3/144A
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13:50 18/11/24
Payment technology specialist Boku announced the start of a share buyback programme on Monday, involving the repurchase of up to four million shares, representing about 1.31% of its issued common stock.
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The AIM-traded firm said the programme was set to run from 18 November to 30 April, or until the authorised number of shares was repurchased.
It said the programme was designed to address the company's belief that its current share price undervalued its long-term growth potential.
Shares purchased would be held in treasury, and could be used to fulfil obligations arising from warrant holders or staff equity remuneration plans, minimising potential dilution for existing shareholders.
The company said it currently holds 2,463,434 shares in treasury, representing 0.81% of its issued stock.
Boku said it had engaged Investec Bank to manage the buyback, which would operate under strict parameters, including a price cap set at 105% of the trailing five-day average mid-market price.
Due to limited liquidity in Boku’s shares on AIM, daily purchases could exceed 25% of the average trading volume, preventing the programme from benefiting from certain exemptions under the Market Abuse Regulation.
The company’s board indicated that it would reassess the potential for further buybacks on completion of the programme, subject to market conditions and its authority to hold up to 5% of issued shares in treasury.
At 1231 GMT, shares in Boku were up 2.7% at 190p.
Reporting by Josh White for Sharecast.com.