Xiaomi announces a buyback plan
The world's fourth largest smartphone manufacturer announced a share buyback plan of up to $1.5 billion, in a move aimed at supporting its faltering shares and demonstrating its confidence in its own business outlook and prospects.
The company will buy back up to $1.53 billion worth of its shares, stocks rally nearly 7% on the news
Stocks impacted: Xiaomi (1810)
As a reminder, last week, the company scrapped a planned share offering in mainland China. According to the official statement, current financial resources will enable Xiaomi to implement the share repurchase while maintaining a solid financial position. The company had cash and cash equivalents of 34.9 billion yuan as of June 30 and total borrowings of 13.8 billion yuan. The shares have lost nearly a third of its value so far this year, hurt by the company’s sharply slowing growth and increased competition. The stock has also been hit amid massive anti-government protests in Hong Kong. After the buyback announcement, shares jumped 6.8% in Hong Kong.
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