AMTD Digital Announces a New Share Repurchase Program
AMTD Digital Inc. (HKD) announces a $20 million share repurchase program until Q1 2024. Repurchases to be made through various means in compliance with SEC regulations.
The announcement of AMTD Digital's new share repurchase program represents a strategic financial decision that could signal several underlying messages to the market. A repurchase of up to US$20 million in shares can be interpreted as a sign of confidence from the company's management in its financial health and future prospects. This move could potentially bolster investor sentiment as it often suggests that the company believes its shares are undervalued.
From a financial perspective, the repurchase program can improve key metrics such as earnings per share (EPS) by reducing the number of shares outstanding. This artificial inflation of EPS can make the stock appear more attractive on a per-share basis. However, it's crucial to assess the company's cash flow situation to ensure that these buybacks do not compromise its ability to invest in growth opportunities or to service any existing debt.
Investors should monitor the program's implementation closely, as the actual impact on the stock price will depend on the market's perception of the buyback's effectiveness and the company's broader financial performance.
Share repurchase programs are often received positively by the market, as they can reflect a company's robust capital allocation strategy. For AMTD Digital, a company listed on the NYSE, this move can also be seen as a commitment to enhancing shareholder value. The program's structure, adhering to the Securities Exchange Act of 1934 and insider trading policies, is designed to maintain market integrity and compliance.
Market conditions will significantly influence the program's execution, with prevailing market prices, liquidity and investor appetite shaping the outcomes. The fact that the board of directors may periodically review and adjust the program's terms adds a layer of flexibility, allowing the company to respond to changing market dynamics.
It's important for stakeholders to consider the broader market context in which this repurchase is occurring. Factors such as industry performance, economic indicators and competitive landscape will all play a role in determining the program's success in enhancing shareholder value.
The legal framework governing share repurchase programs is complex, with specific compliance requirements under the Securities Exchange Act of 1934, including Rule 10b-18 and Rule 10b-5. These rules are designed to prevent market manipulation and insider trading, ensuring that repurchases are conducted in a manner that does not mislead investors.
AMTD Digital's commitment to conducting the repurchase program in accordance with these rules is a critical aspect of the announcement. The company's adherence to its insider trading policies further reinforces its dedication to transparency and legal compliance. As the program unfolds, legal scrutiny will be essential to ensure all transactions align with the regulatory standards and maintain the integrity of the market.
02/14/2024 - 09:23 AM
PARIS & NEW YORK --(BUSINESS WIRE)--
AMTD Digital Inc. (“AMTD Digital” or “Company”) (NYSE: HKD), 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 Digital Inc.
AMTD Digital Inc. (NYSE: HKD) is a comprehensive digital solutions platform headquartered in France . Its one-stop digital solutions platform operates four main business lines including digital solutions services, digital media, content and marketing services, digital investments as well as hospitality and VIP services. It is the fusion reactor at the core of the AMTD SpiderNet ecosystem and empowers and integrates the various digital businesses within its ecosystem. For AMTD Digital’s announcements, please visit https://ir.amtdigital.net/investor-news .
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 Digital Inc., 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 Digital Inc. with the SEC. All information provided in this press release is as of the date of this press release, and AMTD Digital Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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Source: AMTD Digital Inc.
What did AMTD Digital Inc. announce regarding share repurchase?
AMTD Digital Inc. announced a new share repurchase program allowing the repurchase of up to US$20 million of its American depositary shares or ordinary shares until the end of Q1 2024.
Until when can the share repurchase program last?
The share repurchase program can last until the end of the last business day of the first quarter in 2024, U.S. Eastern Time.
How will the repurchases be made?
The 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.
What regulations will the share repurchases comply with?
The share repurchases will be made in accordance with applicable rules and requirements under the Securities Exchange Act of 1934, as amended, and the Company’s insider trading policies.
Who will review the share repurchase program periodically?
The Company’s board of directors will review the share repurchase program periodically and may authorize adjustments of its terms and size.
