AMTD IDEA Group Announces a New Share Repurchase Program

Rhea-AI Summary

AMTD IDEA Group announces a new share repurchase program of up to US$20 million, aiming to buy back its American depositary shares or ordinary shares until Q1 2024.

Financial Analyst

The authorization of a new share repurchase program by AMTD IDEA Group represents a significant financial strategy that could influence the company's stock performance. Share repurchase programs are often implemented by companies to signal confidence in their own stock and to manage the dilution of shares, especially if they feel the stock is undervalued. By repurchasing up to US$20 million of its shares, AMTD IDEA is effectively investing in itself, which could be interpreted as a positive signal by investors, potentially leading to an increase in stock price.

However, the impact of such a program on the company's financials should be examined critically. The cash used for repurchasing shares will reduce the company's cash reserves, which could have been used for other value-creating opportunities such as investments in growth or paying down debt. It's essential to analyze the company's balance sheet to understand if the current cash position justifies the repurchase without compromising its financial stability.

Market Research Analyst

From a market perspective, the announcement of a share repurchase program can be a catalyst for stock market performance. It often leads to a positive reaction in the market as it can be perceived as a company's management believing in the intrinsic value of the company being higher than the market price. Additionally, it can lead to a reduction in the number of shares outstanding, which can increase earnings per share (EPS), a key metric for investors.

However, the effectiveness of this strategy depends on the broader market context and investor sentiment. If the market conditions are unfavorable or if there's a bearish sentiment towards the sector or the company itself, the repurchase program may not have the intended positive effect. It is also crucial to assess the historical performance of the company's stock post-repurchase announcements to gauge potential investor reactions.

Legal Expert

In terms of compliance, AMTD IDEA's share repurchase program will need to adhere to the Securities Exchange Act of 1934, as well as the specific rules such as SEC Rule 10b-18 and Rule 10b-5, which govern the conditions under which a company can repurchase its shares. These regulations are designed to prevent market manipulation and to ensure that the repurchases are made in a manner that does not artificially inflate the stock price.

It's important to note that the company's insider trading policies will also play a crucial role in the timing and execution of the share repurchases. Insiders are often restricted from trading based on nonpublic information and the repurchase program must be managed in a way that does not conflict with these policies. The board's periodic review of the program is also a critical aspect, as it allows for adjustments in response to changing market conditions or shifts in the company's strategic direction.

PARIS & NEW YORK & SINGAPORE--(BUSINESS WIRE)-- AMTD IDEA Group (“AMTD IDEA” or “Company”, NYSE: AMTD; SGX: HKB) announced today that its board of directors has authorized a new share repurchase program under which the Company may repurchase up to US$20 million of its American depositary shares or ordinary shares until the end of the last business day of the first quarter in 2024, U.S. Eastern Time. The Company plans to adopt and implement this share repurchase program in accordance with applicable rules and requirements under the Securities Exchange Act of 1934, as amended, and the Company’s insider trading policies.

The Company’s proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission Rule 10b-18 and Rule 10b-5 requirements. The Company’s board of directors will review the share repurchase program periodically and may authorize adjustment of its terms and size.

About AMTD IDEA Group

AMTD IDEA Group (NYSE: AMTD; SGX: HKB) represents a diversified institution and digital solutions group connecting companies and investors with global capital markets. Its comprehensive one-stop business services plus digital solutions platform addresses different clients’ diverse and inter-connected business needs and digital requirements across all phases of their life cycles as well as hospitality and VIP services. Through our unique eco-system – the "AMTD SpiderNet" - AMTD IDEA Group is uniquely positioned as an active superconnector between clients, business partners, investee companies, and investors, connecting the East and the West. For more information, please visit www.amtdinc.com or follow us on X (formerly known as “Twitter") at @AMTDGroup.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Statements that are not historical facts, including statements about the beliefs, plans, and expectations of AMTD IDEA Group are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the filings of AMTD IDEA Group with the SEC. All information provided in this press release is as of the date of this press release, and AMTD IDEA Group does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240214261941/en/

IR Office

AMTD IDEA Group

ir@amtdinc.com

Source: AMTD IDEA Group

What did AMTD IDEA Group announce regarding share repurchase?

AMTD IDEA Group announced a new share repurchase program of up to US$20 million for its American depositary shares or ordinary shares until the end of Q1 2024.

When will the share repurchase program end?

The share repurchase program will end on the last business day of the first quarter in 2024, U.S. Eastern Time.

How will the share repurchase be conducted?

The share repurchase may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades, or through other legally permissible means.

What regulations will the share repurchase program adhere to?

The share repurchase program will adhere to applicable rules and requirements under the Securities Exchange Act of 1934, as amended, and the Company’s insider trading policies.

Who authorized the new share repurchase program?

The board of directors of AMTD IDEA Group authorized the new share repurchase program.