Shares of Nation Media Group fell on Monday and on Tuesday’s session after rallying by more than 57% last week driven by recent news that it will consider a buyback of up to 10% of its ordinary shares, subject to regulatory and investors’ approval.
On Monday the counter closed by about 5% lower and fell by 9.83% on Tuesday’s early trading session according to real-time data from Hisa App.
Buybacks are used by companies for diverse reasons such as; to boost investor confidence in a company, buy undervalued stocks, and to drive up a company’s share price.
On June 30, 2020, the Capital Markets Authority published fresh guidelines on share buybacks, allowing listed firms to acquire their own shares from the stock market.
Nation media group is yet to disclose key details about the transaction such as the reason for the buyback, the offer price, mode of financing the program, and validity period of the buyback.
