As we highlighted last month, stock market corrections are opportune periods for companies to execute their share buyback mandates at favourable prices.
The flurry of share buyback activity in March continued in April, though with reduced intensity. A total of 22 companies repurchased about 39.8 million shares at a total consideration of $116.8 million in April. This is in contrast with the 30-month share buyback high of $222 million in total consideration reported in March.
Late April also coincides with AGM season for FYs ending 31 Dec, when 12-month share buybacks are scheduled to be approved.
This week, we will look at four companies who have bought back the largest percentage of their outstanding shares based on buyback mandates approved in the past 12-months.
All figures cited in this article regarding share buyback activity is from SGX My Gateway and is correct as at 30 April 2018.
S i2i Limited (SGX: BAI)
S i2i Limited is primarily a regional provider of telecommunication and IT services. It also owns Singapore Electric Vehicles Pte Ltd, which is Singapore’s first fully electric commercial car company that leases to private-hire car drivers.
In Indonesia, S i2i operates a distribution network of approximately 55,000 resellers, and 300 dealers and sub-dealers for mobile prepaid cards, as well as a network of various branch offices and sub-branch offices in Indonesia. The Company is among the top three distributors for Telkomsel, which has more than 60% market share of Indonesia’s airtime business.
Since its buyback mandate issued on 8 January 2017, the company has repurchased 1,365,145 shares, which amounts to 9.96% of its outstanding shares. S i2i held its AGM on 30 April 2018 and its shares closed this week at $2.56.
Silverlake Axis Ltd (SGX: 5CP)
SilverLake Axis is a software company that specialises in providing Financial Technology (Fintech) solutions. It has contracts with banks like as OCBC and CIMB to provide digital banking solutions.
On 24 April 2018, Silverlake announced that they secured a new core banking system contract with a large banking institution in ASEAN to modernise its existing core banking This contract is scheduled to be implemented within 15 months.
Acting on its buyback resolution of 26 October 2017, Silverlake has repurchased 6.04% of outstanding shares. In April, they bought 2,745,300 shares at more than $1.5 million. Silverlake closed this week at $0.525.
Starburst Holdings Limited (SGX: 40D)
Headquartered in Singapore, Starburst specialises in the design and engineering of firearms-training facilities, including anti-ricochet ballistic protection systems, for firearm shooting ranges and tactical training mock-ups for police, military and security agencies in Southeast Asia and the Middle East.
Based on its buyback resolution passed on 27 April 2017, the company bought a total of 8,217,900 shares, which represents 3.30% of outstanding shares. In April 2018 alone, they bought 4,441,300 shares at a total consideration of $1,854,804. Starburst closed this week at $0.40.
Tiong Seng Holdings Limited (SGX: BFI)
Tiong Seng Holdings Limited and its subsidiaries operates as a building construction and civil engineering contractor for both private and public sectors, including residential, commercial, institutional, civil engineering, foundation, and infrastructural projects. It also has a rental segment for investment properties, plant and machinery, as well as a pre-fabrication solutions segment.
Founded in 1959, Tiong Seng has operations in Singapore, China, Papua New Guinea, and Malaysia.
Since its buyback resolution on 26 April 2017, the company has repurchased 8,716,800 shares, which makes up 1.92% of outstanding shares. In April 2018, they bought 264,100 shares at a total consideration of $103,175. Tiong Seng closed this week at $0.395.
If you are interested to read more about Singapore stocks, you can check out our extensive archive of articles of 4 Stocks This Week. To stay up to date with the latest news on the Singapore Exchange, you also can check out the SGX My Gateway Market Updates to get more insights.
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