Aboitiz Power to lose spot in PSE index on Sept. 26
By Alena Mae S. Flores – September 20, 2023, 8:55 pm
from manilastandard.net
Aboitiz Power Corp. will no longer be a part of the Philippine Stock Exchange index (PSEi) effective Sept. 26, according to a new memorandum issued by the Philippine Stock Exchange.
Aboitiz Power’s public float fell to 19.9 percent following the conduct of a buyback program this month.
“Even with this stock buy-back program, there is no intention to delist from the PSE, but merely to reward our existing shareholders with a larger share of a brighter future,” the company said.
“The company is aware that the purchases may reduce the public ownership level of Aboitiz Power below the minimum required to remain a component of the Philippine Stock Exchange index,” it said.
A listed firm should be among the top companies in terms of liquidity and market capitalization and it should also have a free float level of at least 20 percent of its outstanding shares to qualify for PSEi.
Aboitiz Power said its fundamentals remain intact, and that “this program will create further shareholder value.”
Aboitiz Power purchased 11,407,500 of its own shares for P353.838 million as part of its buy-back program as of Sept. 19.
The company initiated the buy-back program as an opportunity to repurchase shares “as Aboitiz Power believes that the current share price range does not reflect the intrinsic value of the company and its future business prospects.”
Aboitiz Power’s shares traded at a high of P40 per share in February.
“This action is an expression of confidence by the company in the fundamentals of the country, the energy industry and its business,” it said.
Aboitiz Power initiated the buyback program on Sept. 15, purchasing 1,557,500 shares at P31.60 apiece followed by another buyback of 950,000 shares on Sept. 18.
The company also bought 8.9 million shares on Sept. 19 involving several transactions with the price ranging from P30.40 to P31.35.
The company posted a net income of P27.5 billion in 2022, or 32 percent higher than in the previous year.
